The production of ethanol has increased in United States and Brazil in recent years, because of incentives to reduce … gas consumption. In Brazil, there is a big program to use ethanol both as a single fuel or an additive to gas. In US, the …

the most important ethanol markets – Brazil and the USA. For both of these markets we show that the long-run relationship … between prices of ethanol and corn (in USA) or sugar (in Brazil) is positive, strong and stable in time. Importantly, we show …