With national security on everyone?s mind and the average retail price of gasoline at all-time inflation-adjusted high of more than $3.50 a gallon, in recent years analysts have touted Brazil as an example the U.S. should follow on the path to ?energy independence.?

Unfortunately, the analysts misunderstand both the differences between the energy markets in the United States and Brazil and the underlying reason for Brazil?s success. Brazil?s success is often attributed to its thriving ethanol market, but this is at most only a small part of the story.

In 2006, according to the Energy Information Administration (EIA), ethanol made up 20 percent of the total fuel consumed by automobiles and trucks on Brazilian highways. Despite the fact that in absolute terms the U.S. now produces more total ethanol than Brazil, at less than 3 percent of the fuel used in cars and trucks, we st...
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Suggested intro: Advocates of producing ethanol as an alternative fuel sources thought the U.S. could mirror the success of Brazil. Commentator Sterling Burnett explains why he thinks it hasn't and won't happen.