Posted on 04/05/2008 8:46:00 AM PDT by Dan Evans
In the pantheon of well-intentioned governmental policies gone awry, massive ethanol biofuel production may go down as one of the biggest blunders in history. An unholy alliance of environmentalists, agribusiness, biofuel corporations and politicians has been touting ethanol as the cure to all our environmental ills, when in fact it may be doing more harm than good. An array of unintended consequences is wreaking havoc on the economy, food production and, perhaps most ironically, the environment.
In the United States, ethanol is the primary focus and, as a result, corn growers and ethanol producers are subsidized heavily by the government
But it turns out that the use of food for fuel is wrought with difficulties. Corn, or some derivative thereof, is a common ingredient in a variety of packaged food products. So it's only natural that, as it becomes a rarer commodity due to the conflicting demands of biofuel production, the prices of those products will go up. The prices of food products containing barley and wheat are also on the rise as farmers switch to growing subsidized corn crops. During a time of economic instability, the last thing Americans need is higher prices at the grocery store, but that's exactly what they're getting.
(Excerpt) Read more at sfgate.com ...
My very own daughter (who I am very proud of), when informed of this article, replied, “The answer is Nuclear Energy.” Smart girl.
Secondly, there is rapidly increasing demand for food from India, China, and other economic bright spots around the world. One of the first things formerly poor people do as they work their way up the ladder is start eating better. Increased international demand is a huge cost driver. But the media will not usually report that either. It's easier to bash biofuels.
Third, ethanol last year met virtually the entire increase in U.S. gasoline demand. One current estimate is that gasoline prices would be 15% higher without ethanol. Conclusion: the average consumer is probably saving more at the gas pump than he is paying in higher food costs. But -- you guessed it -- the media won't report that either. Both food and fuel are rising, so the geniuses of the Fourth Estate will report it as a double crisis rather than observing that BTUs and calories are fungible and that there is an offset for consumers, who by and large are buying both.
Sadly, W has gone over to the dark side regarding Glo-Bull Warming.
He could have vetoed the mandated increase in Ethanol usage, CFL Light Bulbs, ect., but caved to who, what and why, God only knows.
I was watching a special report on cnn of all places making the same complaints about ethonal. they even said it takes more energy to produce ethonal too.
“First, the raw commodity price of food averages about 20% of the retail cost.”
Maybe, maybe. But this is for all food including highly processed food. And even that a doubling of raw food commodities would be raise food prices at 3x, or so, the general rate of inflation.
Put on your thinking cap and quit defending the greedy subsidizing loving farm lobby and realize that the marginal increase in demand plus the special subsidies for ethanol are INCREASING the cost of both energy and food.
So would our gas mileage, so quit defending this stupid boondoggle.
Then transport this fuel to get less than a gallon of gas...we're making a difference now...
Nahh, ah hain't been, butt drankin' ahlla dis hyar EEeeeeethanol has made me need ta step outside and take a long FISS.
Ann Rand... ;^)
Here is a challenge to the biofuel supporters of the world. If your product is so great, take a no subsidies pledge at least in 3 to 5 years. You produce a great product and the world will beat a path to your door. No takers. You guys want subsidies and mandates in perpetuity. The ethanol boosters are just like other welfare seekers trying to justify their perpetual benefits and inability to survive without mandates and subsidies.
No matter the small actual demand for corn-based ethanol and the multitude of problems, the ethanol backers never give up. If all else fails, they will simply shout “1/2 the military budget is a subsidy to big oit!”
Is that factoring WITH or WITHOUT "our" billions and billions of tax subsidies?
If this is such a good deal, why can't it stand on its own merits and let the free market decide?
Of course we all know the answer to that one.
And how about the sharp increase in all food products which will ONLY continue to rise as this biggest boondoggle in my 64 years is mandated to continue.
...mass starvation...
~~~~~~~~~~
It’ll never happen here. America’s ethanol splurge may cause mass starvation somewhere in the world in a round about way, but americans will always find a way to feed themselves. But should we feel responsible for parts of the world that rely on our ag products to survive? Their food supply is their own responsibiblity not ours. If we want to experiment with ethanol and burn our own food for fuel, that’s our business. It may or may not be good business, but it is our business.
Folks here don’t want to have you tell them those facts. It just confuses and often times enrages them.
Wull, that theyar gives drainin yer “radiator” a whole new meanin!!!
If that's true, then why does the government have to force the public to buy the crap?
If ethanol were really saving us money, there would be no need for government mandates and subsidies; we would use it of our own free will.
But obviously three is such a "need," and hence the absurdity of your argument becomes apparent.
The Billion Ton Study estimated that the existing resource base, with cost-competitive cellulosic ethanol, could supply 30% of our gasoline usage. That -- to repeat -- is the existing resource base, mainly current farm and forest waste. It doesn't include dedicated energy crops, genetically modified feedstocks, or the commercialization of exotic feedstocks
It's all too fluid to put a number on. However, the first commercial scale cellulosic ethanol demonstration plants are being built right now and if they hit their projected price targets, the world of energy will change big time, and fast. There are no guarantees but cellulosic ethanol in conjunction with plug-in hybrids could conceivably be a path to energy independence. That doesn't seem to matter to some people around here. It does to me.
That's what they say about every subsidy. In reality it takes a huge political battle to get rid of a subsidized industry once started.
Ridiculous. The selling price is determined by supply and demand.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.