K±Cu y Mg 5 CeO x and Cs±Cu/ZnO/Al 2 O 3 are selective catalysts for the synthesis of alcohols from an H 2 /CO mixture at relatively low pressures and temperatures. CO 2 produced in higher alcohol synthesis and water±gas shift (WGS) reactions reversibly inhibits the formation of methanol and higher alcohols by increasing oxygen coverages on Cu surfaces and by titrating basic sites required for aldol-type chain growth steps. Inhibition effects are weaker on catalysts with high Cu-site densities. On these catalysts, the abundance of Cu sites allows reactants to reach methanol synthesis equilibrium and maintain a suf®cient number of Cu surface atoms for bifunctional condensation steps, even in the presence of CO 2 . The addition of Pd to K±Cu 0.5 Mg 5 CeO x weakens CO 2 inhibition effects, because Pd remains metallic and retains its hydrogenation activity during CO hydrogenation. Basic sites on Mg 5 CeO x are stronger than on ZnO/Al 2 O 3 and they are more ef®ciently covered by CO 2 during alcohol synthesis. K and Cs block acid sites that form dimethylether and hydrocarbons. Alcohol addition studies show that chain growth occurs predominantly by aldol-type addition of methanol-derived C 1 species to ethanol and higher alcohols, following the rules of base-catalyzed aldol condensations. The initial C±C bond formation required for ethanol synthesis, however, proceeds directly from CO, at least on K±Cu y Mg 5 CeO x catalysts. A detailed kinetic analysis shows that chain growth probabilities are very similar on K±Cu y Mg 5 CeO x and Cs±Cu/ZnO/Al 2 O 3 catalysts. The growth probabilities of C 1 chains to ethanol and of iso-C 4 chains to higher alcohols are much lower than for other chain growth steps. # 1998 Elsevier Science B.V.