Ethanol expansion and indirect land use change in Brazil

We ask whether biofuel expansion is consistent with new laws, limiting forest clearing in Brazil. A simulation with ethanol expansion scenario is performed for year 2020, in which land supply is allowed to increase only in states located on the agricultural frontier. Results suggest that each new hectare of sugar cane requires only 0.14 ha of new land, with another 0.47 ha converted from pasture use. Hence policies limiting deforestation are unlikely to prevent greater ethanol production. Finally, regional differences in sugarcane productivity are found to be important elements in ILUC effects of sugar cane expansion.