| Abstract: | A hybrid approach combining life cycle assessment and input‐output analysis was used to demonstrate the economic and environmental benefits of current and future improvements in agricultural and industrial technologies for ethanol production in Brazilian biorefineries. In this article, three main scenarios were evaluated: first‐generation ethanol production with the average current technology; the improved current technology; and the integration of improved first‐ and second‐generation ethanol production. For the improved first‐generation scenario, a US$1 million increase in ethanol demand can give rise to US$2.5 million of total economic activity in the Brazilian economy when direct and indirect purchases of inputs are considered. This value is slightly higher than the economic activity (US$1.8 million) for an energy equivalent amount of gasoline. The integration of first‐ and second‐generation technologies significantly reduces the total greenhouse gas emissions of ethanol production: 14.6 versus 86.4 grams of carbon dioxide equivalent per megajoule (g CO2‐eq/MJ) for gasoline. Moreover, emissions of ethanol can be negative (–10.5 g CO2‐eq/MJ) when the system boundary is expanded to account for surplus bioelectricity by displacement of natural gas thermal electricity generation considering electricity produced in first‐generation optimized biorefineries. |
