There are both advantagesand disadvantages of the use of ethanol as an alternative fuel in general.Currently, 8 million cars worldwide run on either pure ethanol or ethanolblends. The use of ethanol as an alternative fuel source in Australia iscurrently unviable on account of the associated economic cost, andenvironmental and agricultural implications; however, due to the rising priceof petroleum, the exhaustion of fossil fuels, and growing environmentalawareness and concern, it is becoming increasingly feasible and desired. Inorder for ethanol to be used as a fuel effectively, car engines need to bedesigned such that they can run on ethanol without damage (petroleum lubricatesthe engine, reducing rust, and wears the engine less than ethanol).

Ethanol costs more than petrol to produce sothe federal government has setup subsidies and excise concessions toencourage the production of ethanol(from crops) to be added to petrol (presumablyto reduce oil consumption). In the 1970s and 1980s, Braziladopted ethanol as it main car fuel, with sugar cane being grown specificallyfor ethanol production. Brazil aimed to both reduce consumption ofnon-renewable petroleum and create a locally produced fuel market, althoughextreme expenses caused the project to be abandoned. In Brazil all cars utilise a blend of ethanol andpetrol Countries such as brazil have, in the 1970s and 80s,implemented the use of ethanol as a main fuel, by growing large areas of sugarcane for the specific conversion to ethanol. The trial had only limited successdue to the high costs involved. Ethanol has been advocated mainly onenvironmental grounds, that it has a neutral effect on the greenhouse effect.

Therefore, ethanol should be used more as an alternative fuel as it reducesgreenhouse emissions by recycling carbon dioxide and since it is a renewableresource and will never run out like petroleum will.