Home
/
RELIGION & LIBERTY ONLINE
/
Beginning of the End of Corn Ethanol?
Beginning of the End of Corn Ethanol?
Dec 15, 2025 6:15 AM

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
Something Vastly More Powerful Than Evil
In his latest Forbes column, Rev. Robert A. Sirico explains why despite the tragedy in Newton we can speak of joy during this Christmas season: When we ask our bewilderedwhy? –we are not looking for data points.Even less should we offer glib responses in the face of this shattering loss – this modern-day slaughter of the innocents. We are, instead, seeking themeaningin the face of thismysterium iniquitatis.The meaning we seek is not so much the significance of evil as the...
Court: Justice Dept. Can’t Just Say ‘Trust Us, Changes Are Coming’
“There is no, ‘Trust us, changes ing’ clause in the Constitution,” wrote Judge Brian Cogan in his ruling issued two weeks ago against a Justice Department motion to dismiss the Archdiocese of New York’s lawsuit against the HHS mandate. “To the contrary, the Bill of Rights itself, and the First Amendment in particular, reflect a degree of skepticism towards governmental self-restraint and self-correction.” More federal judges ing to the same conclusion. Earlier this week a federal appeals court in Washington,...
Should We Tax Volunteer Work for Charities?
During the debate about how to resolve the fiscal cliff crisis, lawmakers on both sides have considered reducing the charitable tax deduction. That strikes many people as the wrong approach (especially those of us who work for non-profits!) even though we may not be able to explain why it’s such a bad idea. Fortunately, John Carney has provided a superb explanation for why reducing or removing this deduction is counterproductive. For instance, changing the charitable deduction as Carney notes, has...
Conservation and Entrepreneurial Environmentalism
I found this profile of Mark Tercek, the former Goldman Sachs managing director who was tapped to head the Nature Conservancy, raises some profound issues concerning the relationship between economics and the environment: Tercek, 55, e to the Conservancy to fight financial brush fires. With the help of his board and the input of the Conservancy’s 600 scientists, he wants to remake the face of the American and global environmental movements. He has no quarrel with the current model—largely built...
Leveraging Creativity and Markets to Bring Light to the Poor
Over a billion people are still using kerosene as a primary fuel source, with over 1.5 million dying annually from issues related to indoor air pollution and kerosene fires. For many in the developing world, solar lamps are a new, inexpensive solution to the problem. A recent piece in The Economist hails solar lamps as the next “mobile phone” for the poor, noting that “its spread is sustainable because it is being driven by market forces, not charity.” In an...
Why Christians in Business Should Read Poetry
Writing for the Harvard Business Review, my friend (and coauthor) John Coleman argues that business professionals can benefit from reading poetry. While his article is not directed at people of faith, I think his claims are particularly relevant to Christians in the business world: Poetry can also help users develop a more acute sense of empathy. In the poem “Celestial Music,” for example, Louise Glück explores her feelings on heaven and mortality by seeing the issue through the eyes of...
How Should Christians View Property?
Étienne Cabet, a French philosopher and founder of a utopian socialist movement, once said: “Communism is Christianity.” The concept of property has existed longer than Western Civilization; trying to understand what property is and who can claim it has been an important issue for centuries. But, what is the Christian view of private property and ownership? Cabet, and others who believe that Christianity supports the concept munism or socialism, base their opinion on one particular passage of Scripture. In Acts:...
Jeff Sandefer Nominated for Business Professor of the Year
Jeff Sandefer, co-author (with Rev. Robert Sirico) of the newly published book, A Field Guide for the Hero’s Journey, has been nominated for Business Professor of the Year by The Economist‘s Economic Intelligence Unit. Sandefer, a lifelong entrepreneur, now uses his business acumen in teaching both business students and children. One of his adult students shared this about him: Jeff has this insatiable thirst to build principled entrepreneurs and business leaders that I have never seen in anyone before. His...
Free Kindle Ebook: ‘A Field Guide to the Hero’s Journey’
Acton is offering a free Christmas gift: a free Kindle download of the new book, A Field Guide to the Hero’s Journey. The book, co-authored by Jeff Sandefer and Rev. Robert Sirico, has been called a “the modern ‘how-to’ for entrepreneurs working on plishing big things” by Andreas Widmer, and is a terrific book not only for adults but for young people. You can also listen to the authors discussing their collaboration on this book on this Radio Free Acton...
Social Engineering Makes For Poor Economic Policy
Writing over at The Atlantic, American Enterprise Institute scholar Christina Hoff Sommers shares the unsettling story of what a growing number of Swedish activist groups and political factions are attempting to do to “traditional” gender roles. Is it discriminatory and degrading for toy catalogs to show girls playing with tea sets and boys with Nerf guns? A Swedish regulatory group says yes. The Reklamombudsmannen (RO) has reprimanded Top-Toy, a licensee of Toys”R”Us and one of the largest panies in Northern...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved