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Ethanolomics: The Think-About's of the Mexican Ethanol Project


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  • Ricardo Cantú


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    The Mexican Ethanol Project has the potential of power up rural economy, improve the environment quality, and substitute the non-renewable fossil energy resources. But the risk of not achieving these is latent: the market distorts that it could unleash can change the expected outcomes. Public policies, such as No Deforestation, Investments in Agricultural Productivity, and Ethanol Manufacture in situ, could help orientate the private incentives to increase social welfare. In a big proportion, PEMEX and the Mexican Federal Government would be directly, or indirectly, affected by the domestic ethanol production, opening a door for them to participate in it and avoid damage on their interests. But there's still a question to answer: how long it would take before these benefits could be felt?

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    Bibliographic Info

    Paper provided by Escuela de Graduados en Administración Pública y Políticas Públicas, Campus Monterrey in its series Working Papers with number 20073.

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    Length: 17 pages
    Date of creation: Feb 2007
    Date of revision: Aug 2007
    Handle: RePEc:egb:wpaper:20073

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    Keywords: ethanol; rural development; Mexico; public policies; oil crisis;

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