Ethanol consumption in Central America

A handful of Central American countries produce ethanol. El Salvador, Guatemala, Costa Rica, and Nicaragua generated a combined 346 million liters of ethanol in 2011, according to CIFOR, but less than 10 percent of this fuel was consumed in the region (most was exported to the United States and Europe). Recent biofuel blend mandates in Guatemala, Costa Rica , and Panama will require domestically consumed fuel to be mixed with up to 10 percent ethanol in the next few years.

What are the major barriers to biofuel consumption in Central America? What policy measures or financial incentives might facilitate domestic use of ethanol? Will biofuel blend mandates make a difference?

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