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Technology, Institutions, and Public Policy in the Age of Energy Substitution: The Case of Latin America

Since 1973, the Organization of Petroleum Exporting Countries (OPEC) has imposed higher energy costs and so profoundly changed the conditions for growth in most of the world's developing countries. That is particularly true for the 18 countries in Latin America that are net importers of petrole...

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Bibliographic Details
Published in:Journal of economic issues 1983-06, Vol.17 (2), p.521-528
Main Authors: James, Dilmus D., Street, James H.
Format: Article
Language:English
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Summary:Since 1973, the Organization of Petroleum Exporting Countries (OPEC) has imposed higher energy costs and so profoundly changed the conditions for growth in most of the world's developing countries. That is particularly true for the 18 countries in Latin America that are net importers of petroleum and its derivatives. These countries are beginning to seek energy substitutes, but the advanced technological base that is necessary exists throughout the region in only rudimentary form. The technological process cannot proceed until current institutional resistance is overcome and prevalent modes of social control are reorganized. Brazil is leading the search for energy substitutes. It has launched a $5 billion program to produce alcohol from sugarcane, with hopes of providing 2% of its national energy needs. Even Mexico, rich in hydrocarbon resources, has tried to avoid excessive dependence on oil with comprehensive research programs. However, the Mexican experience underlines the need for the entire region to improve its scientific methods and to assign budgetary priorities.
ISSN:0021-3624
1946-326X
DOI:10.1080/00213624.1983.11504136