Countries like Brazil have already done this. Over the last thirty years, Brazil has used a mix of regulation and direct government investment to develop a highly efficient biofuel industry; 70 percent of its new vehicles now run on sugar-based ethanol instead of gasoline. Without the same governmental attention, the U.S. ethanol industry is just now catching up. Free-market proponents argue that the heavy-handed approach of the Brazilian government has no place in the more market-oriented U.S. economy. But regulation, if applied with flexibility and sensitivity to market forces, can actually
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