November 20, 2003

Ethanol fuel - Government Corn industry subsidy

from Reason magazine bq. The new subsidies to produce ethanol from corn are a classic example of "log-rolling." They are designed to bribe important Democratic lawmakers into voting for the whole energy bill. And it's apparently working—Senator Thomas Daschle (D-SD) and Senator Byron Dorgan (D-ND), both of whom hail from corn producing states, say they will vote for it . But perhaps one can make the case that ethanol is a good deal for the economy and the environment? After all ethanol is a "renewable fuel" that displaces oil imported from the unstable Middle East and helps clear the air, right? bq. On the pro-ethanol side, a 2002 U.S. Department of Agriculture study found, "Production of corn-ethanol is energy efficient, in that it yields 34 percent more energy than it takes to produce it, including growing the corn, harvesting it, transporting it, and distilling it into ethanol." Of course, one might suspect that USDA may have an interest in finding that agricultural subsidies of any sort are a good thing. bq. What do other experts have to say? Cornell University biologist and fierce ideological environmentalist (and no friend of this author), David Pimentel offers a different analysis. In an article in the June 2003 issue of Natural Resources Research entitled "Ethanol Fuels: Energy Balance, Economics and Environmental Impacts are Negative," Pimentel finds that "about 29 percent more energy is used to produce a gallon of ethanol than the energy in a gallon of ethanol." Posted by DaveH at November 20, 2003 9:30 PM