Home
/
RELIGION & LIBERTY ONLINE
/
Beginning of the End of Corn Ethanol?
Beginning of the End of Corn Ethanol?
Jan 13, 2026 12:41 PM

Ethanol subsidies, once considered a sacred cow, are facing the possibility of being axed from the budget. The Senate cast a deciding vote, 73-27 in repealing the 45 cent per gallon subsidy to refiners for blending gasoline with ethanol, and the 54 cent per gallon tariff on imported ethanol.

Cutting the ethanol subsidy and repealing the tariff still face an uphill battle as it must pass the house and get the signature of President Obama, who has vowed not to fully repeal the subsidy. Supporters of ethanol are fighting harder to preserve the subsidy and tariff, and are now issuing claims that the ethanol subsidy keeps gas prices lower than what they would be if the subsidy wasn’t in place.

Iowa State University released a study arguing that ethanol has helped suppress gasoline prices. It is of no surprise that supporters of the ethanol subsidy and tariff have embraced the study by Iowa State University with open arms and are using it to add weight to their position.

Unfortunately for supporters of the ethanol subsidy, the Institute for Energy Research, released its own study debunking the arguments from Iowa State. While the Institute for Energy Research admits that removing the ethanol subsidy will result in a short-term spike in gasoline prices, they argue that in the long run consumers are better off without the ethanol subsidy–ideally the country would’ve been better off if the subsidy had never existed.

Those who claim that removing the ethanol subsidy and tariff will increase gasoline prices also fail to acknowledge principles of basic market economics. By removing the tariff, the United States is able to import cheaper ethanol from countries like Brazil, which produce the cheaper sugar-based ethanol, thus making ethanol more affordable for consumers. As a result, the market adds a product pete with gasoline, and petition, may drive the price of gasoline lower.

The concept petition driving down prices is explained by Joel Velasco, former chief representative in North America for the Brazilian Sugarcane Industry Association. Velasco argues petition between corn and sugarcane ethanol will benefit consumers. The principle petition found in his argument can be applied petition between gasoline and ethanol as well.

While it may seem like ethanol from Brazil is a perfect solution, there are unintended consequences that must be weighed. Ecology professor at the University of São Paulo in Brazil, Luiz Martinelli, warns of the many problems with Brazilian ethanol in an article published in the Cornell Daily Sun. Martinelli explains that ethanol production pollutes the environment and results cause serious problems:

Ethanol production fosters deforestation in Brazil. Sugarcane needs a well-defined drought season to concentrate sugars in the cane stalk, making the wetter Amazon region less than ideal for growth. Consequently, growers convert increasing areas of land in the transitional area between the cerrado grasslands and the Amazon forests to sugarcane. As a result, the increase may indirectly lead to deforestation as other crops, like soybean, are pushed into the Amazon.

“We don’t have much room for deforestation. If sugarcane causes 1,000 of squared kilometers of deforestation, we’ve set off any savings [of avoided carbon emissions] that we have saved,” emphasized Martinelli.

Such unintended consequences were also articulated by Ray Nothstine on the PowerBlog in 2007 as religious leaders began to express alarm about increasing ethanol production:

Religious leaders are speaking out. In March, Roman Catholic bishops in Brazil warned that a rapid increase in ethanol production based on sugar cane could lead to widespread deforestation, massive relocation of workers and munities, and harsh working conditions for cane cutters. Analysts predict that Brazil, the world’s largest exporter of ethanol, may increase ethanol production as much as 40 percent in the next four years. “We are going to turn the country into a huge cane (plantation),” said Cardinal Geraldo Majella Agnelo. In Colombia, Christian aid organizations say armed groups are driving peasants off their lands to make way for plantations of palm oil, another biofuel. Acreage dedicated to production of the palm oil tree has more than doubled in the last four years.

Nothstine later explains in “‘Big Corn’ and Unintended Consequences” how corn ethanol will increase food prices, is more costly to produce and transport, and has pollution problems.

If ethanol made from sugarcane gains traction in the United States and other countries, the same questions that have been raised by corn ethanol must also be asked when es to sugar-based ethanol. Will we have a problem with unintended consequences? Will sugar ethanol contribute to rising food prices in a manner similar to that of corn ethanol? What effects will sugar ethanol have on the environment, and what are the impacts of deforestation?

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Book Review: My Grandfather’s Son
Perhaps the most striking theme of Associate Justice Clarence Thomas’s autobiography My Grandfather’s Son is just how many obstacles Thomas had to e to reach the high judicial position he currently holds. Thomas was born into poverty, abandoned by his father, and was raised in the segregated South all before achieving the American Dream. At the same time, it was Thomas’s poverty-stricken circumstances that would help propel him to a world of greater opportunity. Because of his mother’s poverty, when...
Farewell, Father Neuhaus
First Things has announced that Father Richard John Neuhaus died this morning. I am hardly qualified to write a eulogy, having never met the man. No doubt others, including one or two Acton colleagues who knew him better, will perform this service admirably. But I pelled to offer a few words, as I have long admired Fr. Neuhaus and his vital work, in particular the journal he edited for many years, First Things (FT). In the mid-1990s, I was a...
Acton Commentary: A Second Opinion on Employer Responsibility for Heath Care
Health care reform is likely to move back into the public eye as a new Congress and a new Obama administration prepare to start work this month. In this week’s Acton Commentary, Dr. Don Condit argues for a move away from employer funded health care benefits to a portable system. “Corporate human resources departments should not be viewed as the main source of support for Americans’ health care,” he writes. “The iniquitous government subsidy for employer-based health care could be...
Movie Review: Valkyrie
The year is 1943 and Valkyrie, the second release under the revamped United Artists brand, opens with German officer Claus von Stauffenberg (Tom Cruise) on assignment in Africa. He had been sent there because his opposition to Hitler and the Nazi regime had e dangerously explicit and bellicose. His promotion to lieutenant-colonel of the general staff and transfer from the European lines to Africa is intended to give him some protection from pro-Nazi officers who might make trouble for him....
Why We Give — Liberal and Conservative
Nicholas Kristof’s Dec. 21 New York Times column was, he says, “a transparent attempt this holiday season to shame liberals into being more charitable.” He quotes Arthur Brooks’ “Who Really Cares” book which shows that conservatives give more to charity than liberals. The upshot is that Democrats, who speak passionately about the hungry and homeless, personally fork over less money to charity than Republicans — the ones who try to cut health insurance for children. “When I started doing research...
Ignorance, Humility, and Economics
I like Robert Samuelson’s recent column about the difficulty (impossibility?) of accurately analyzing economic reality, let alone predicting its future. Over the past several months a few people, mistaking me for someone who knows a great deal about economics, have asked what I think about the financial crisis, the stock market, the recession, etc. My response is usually something along the lines of the following: Anyone who pretends to know and pletely the causes of the economic meltdown and/or how...
Wilken on Islam
One of the most thought-provoking articles I’ve read lately is Robert Louis Wilken’s “Christianity Face to Face with Islam,” in the January 2009 issue of First Things. It’s accessible online only to subscribers, but you can find the publication at academic and high-quality municipal libraries and it will be freely available online in a month or two. Wilken makes so many interesting and informed observations that I don’t know where to start. Among the points to ponder: “In the long...
Christmas and the Cross
Two of Eric Shansberg’s recent PowerBlog posts got me thinking of some other things I had run across in the last couple weeks during the run-up to Christmas Day. The first item, “Santa and the ultimate Fairy Tale,” quotes Tony Woodlief to the effect that “fairy tales and Santa Claus do prepare us to embrace the ultimate Fairy Tale.” Schansberg’s (and Woodlief’s) take on this question is pelling and worth considering, even though I’m not quite convinced of the value...
One Good Thing about Term Limits
I’m ambivalent about the value of term limits, but one thing that can certainly be counted in their favor is that they (at some point at least), force lawmakers to go out and try to make a living in the economic environment which they helped to shape. In Michigan, nearly half of the 110-member House of Representatives will consist of new members. Of the 46 new members, 44 ing from seats that were open because of term limits. And now...
Conservative/Libertarian Books for the Acton Reader
It is the new year and the time of reflection is upon us. In 2008, we witnessed a revolutionary left-liberal presidential victory and the onset of substantial economic challenges. Under the circumstances, I thought now might be a good time to propose a list of outstanding books for the intellectually curious friend or fellow traveler. I would not dare attempt to put these in order based on excellence. Just consider it a series of number ones. 1. Lancelot by Walker...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved