Home
/
RELIGION & LIBERTY ONLINE
/
Beginning of the End of Corn Ethanol?
Beginning of the End of Corn Ethanol?
Dec 17, 2025 5:36 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
Only in Jerusalem: Building Institutions Of Freedom
Religious liberty and economic freedom in the heart of … Israel? In September, the foundational message of the Acton Institute was featured at “Judaism, Christianity, and the West: Building and Preserving the Institutions of Freedom,” a conference that brought together Jewish and Christian scholars in Jerusalem. One featured speaker was Professor Daniel Mark, an Orthodox Jew and an assistant professor of political science at Villanova University, Pennsylvania’s oldest Catholic university. Mark is also a visiting fellow in the Department of...
Family in Decline: How Should Christians Respond?
As Christianity loses influence in the West, and as culture corresponds by taking itscues from the idols of hedonism, it can be easy to forget that most of these challenges are not new. In an article for Leadership Journal, Ryan Hoselton highlights theserecurring “crises,” pondering whatlessons we might learn from Christian responses of ages past. On the topic of family, and more specifically, family in decline, Hoselton points to Herman Bavinck’s The Christian Family,whichtakes aim attherange of threats tothe family...
Who Protects Us From Government Polluters?
“The rules don’t apply to me,” is a favorite maxim of toddlers, narcissists, and government officials. This is especially true of the legislative branch, which frequently exempts itself—and its 30,000 employees—from federal laws that apply to the rest of us. But just as often government at all levels simply ignores laws it finds too burdensome ply with. A recent study published last month in the American Journal of Political Science titled “When Governments Regulate Governments” found that pared with private...
Life in Exile: Bringing Peace and Prosperity to Rural New York
The Acton Institute’s latest film series is having a profound influence on churches munities of all kinds. Hearts are being stirred and inspired, mindsare connecting mission withculture, and as a result, the church is unlocking a bigger-picture vision of God’s plan for creation. Over at the Letters to the Exiles blog, Evan Koons piling letters and testimonials from viewers of the series, sharing how For the Life of the World is transforming their lives munities. In the latest letter, we...
The Call of the Martian
I sawThe Martian this week and was struck by the number of resonant themes on a variety of is issues, including creation, creativity, innovation, entrepreneurship, exploration, work, suffering, risk, and civilization. I won’t be exploring all of these in the brief reflections below, but will simply be highlighting some salient features. The municates something seriously important about the threefold relations of human beings: to God, to one another, and to the creation. There will be some potential spoilers in the...
Leftist Shareholders’ GMO Crusade Runs Aground on Science
Ahhhh, the Left! So often passionate, so obstinately assured of the rightness of their secular crusades mounted under the variety of flags and anthems espousing “social justice” and “environmental sustainability.” And, unfortunately, so often just plain wrong. Such is the case with As You Sow, the Interfaith Center on Corporate Responsibility and other shareholder activist groups that each year apply their supposed religious authority to the proxy resolutions they submit to panies. Certainly, AYS and ICCR investors believe from the...
Samuel Gregg: Why Does The Left Keep Winning?
In today’s American Spectator, Acton’s Director of Research Samuel Gregg notes that left-wing politicians, supporters of socialism, and social engineers seem to have taken over – not just in American politics, but globally. Why? Gregg suggests three reasons: One abiding cause of the left’s on-going ascendency, I’d suggest, is that the visible weakening of orthodox religion throughout the West. As the 20th century Jesuit theologian Henri de Lubac observed, liberalized forms of Judaism and Christianity don’t involve abandonment of a...
How Foreign Aid Can Keep Poor Countries in Poverty
Giving foreign aid directly to poor countries may end up keeping those countries poor. For most readers of this blog and others associated with the Acton Institute this claim will be neither surprising nor controversial. Indeed, it’s been a core assumption behind our work on PovertyCure. But until recently, many Americans would have found the idea to be counter-intuitive, if not obviously wrong. But thanks to the work of the Angus Deaton, the recent winner of the Nobel prize in...
What’s the Real Problem with Payday Loans?
Since its inception in the 1990s, the payday lending industry has grown at an astonishing pace. Currently, there are about 22,000 payday lending locations—more than two for every Starbucks—that originate an estimated $27 billion in annual loan volume. Christians and others worriedabout the poor tend to be very fortable with this industry. While there may be forms of payday lending that are ethical, the concern is that most such lending is predatory, and that the industry takes advantage of the...
Bernie Sanders Loves to Decry ‘Casino Capitalism,’ But What About Economic Freedom?
Inlast Tuesday’sDemocratic debate, Senator Bernie Sanders stayed true to his famed aversion to capitalism, proclaiming the fanciful virtues of “democratic socialism.” Yet when prodded by Anderson Cooper — who asked, “you don’t consider yourself a capitalist?” — Sanders responded not by attacking free markets, but by targeting a more popular target of discontent: Wall Street and the banks. “Do I consider myself part of the casino capitalist process by which so few have so much and so many have so...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved