Posts tagged ‘Hurrah Unfortunately’

Ethanol Get's Slammed

Finally, the blinders are coming off and the media is starting to
wake up to the absolute travesty that is the Congress's promotion of
ethanol.  From Rolling Stone(!) emphasis added.

This is not just hype -- it's dangerous, delusional bullshit.  Ethanol doesn't burn cleaner than gasoline, nor is it
cheaper. Our current ethanol production represents only 3.5 percent of
our gasoline consumption -- yet it consumes twenty percent of the
entire U.S. corn crop, causing the price of corn to double in the last
two years and raising the threat of hunger in the Third World. And the
increasing acreage devoted to corn for ethanol means less land for
other staple crops, giving farmers in South America an incentive to
carve fields out of tropical forests that help to cool the planet and
stave off global warming.

So why bother? Because the whole
point of corn ethanol is not to solve America's energy crisis, but to
generate one of the great political boondoggles of our time. Corn is
already the most subsidized crop in America, raking in a total of $51
billion in federal handouts between 1995 and 2005 -- twice as much as
wheat subsidies and four times as much as soybeans. Ethanol itself is
propped up by hefty subsidies, including a fifty-one-cent-per-gallon
tax allowance for refiners. And a study by the International Institute
for Sustainable Development found that ethanol subsidies amount to as
much as $1.38 per gallon -- about half of ethanol's wholesale market

Hurrah!  Unfortunately, I fear we may be waking up too late.  Already, billions of dollars are being invested by politically connected companies
on the promises of subsidies and promotion of ethanol extending out to
the end of the universe.  At this point, ethanol may be as entrenched
as agriculture subsidies, the education department, and depression-era
alcohol regulation.  The government has no problem reneging on contracts with oil companies, but God forbid anyone deny Archer Daniels Midland the right to infinite subsidies.