The capsaicin in chili is what makes it hot.
Originating in the Americas, today there are more than 200 different types of chili, with varying degrees of spiciness. The heat of the chilies is measured on a scale known as the Scoville Scale, which can help determine which chili pepper to use in your cooking, depending on how much spicy heat you want. If you can't find fresh chili peppers, there are other spicy substitutes you can use.
Tabasco
Although Tabasco has come to refer to any hot sauce, it is in fact the name of a specific brand of sauce made from hot chili peppers. It is very fiery therefore use sparingly, just a few drops can replace a chili. Other ingredients include vinegar and salt. There are also mild varieties available that are made from the slightly less spicy green peppers and jalapeno peppers.
Chili Powder
Chili powder is made from ground dried chili peppers, therefore 1/2 tsp. works perfectly as a replacement for a chili in chili sauce. Check the labels for chili powder as they sometimes contain other ingredients, such as garlic, paprika and cumin to add spice.
Cayenne Pepper
These peppers are very spicy when matured and a bright red; when still green, they are milder. These are popular in Cajun sauces. They are seasonal, ripening and turn red in the fall, while green varieties are around in the summer.
Paprika
Typically sold powdered, paprika is made from hot and sweet dried peppers, therefore it is far milder than chilies and cayenne pepper. There are hot, smoked and sweet varieties available which will add a different flavor to your sauce.
Chipotle Peppers
These jalapeno peppers have been smoked, therefore use only if you wish to give your sauce a smoky flavor. If you're making a Mexican-style, spicy adobo, these are ideal. You can purchase these peppers dried or ground and they can also be rehydrated before cooking.
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