Home
/
RELIGION & LIBERTY ONLINE
/
Beginning of the End of Corn Ethanol?
Beginning of the End of Corn Ethanol?
Dec 8, 2025 1:09 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
3 reasons to study the Russian Revolution today, according to Dutch lovers of liberty
The Bolshevik Revolution was one of the epochal events of modern history, continuing to affect the world in which we live 28 years after the fall of the Berlin Wall. Modern governments and systems of economics were created in imitation, or opposition, of its fundamental tenets. Too much of the memoration of its centenary last week consisted of celebration by its intellectual heirs. However, lovers of liberty across the transatlantic sphere also paused to reflect upon the occasion. On October...
The new bourgeoisie: The lofty socialism of self-loathing capitalists
Economist Deirdre McCloskey’s transformative trilogy on the “Bourgeois Era” has already shifted the paradigm of popular thought on what, exactly, spurred the rise of capitalism and fostered our newfound freedom and prosperity. According to McCloskey, the Great Enrichment came not from new systems, tools, or materials, but from the ideas, virtues, and rhetoric behind them. “The modern world was made not by material causes, such as coal or thrift or capital or exports or exploitation or imperialism or good property...
How the ‘sheepskin effect’ signals education and affects wages
Note: This is post #56 in a weekly video series on basic microeconomics. Why do wages in America differ greatly among workers? One reason, says economist Alex Tabarrok, includes differences in human capital—tools of the mind. Education is one of the biggest investments people make to increase their human capital. Which college majors offer the greatest returns? And are all returns on education due to human capital? In this video by Marginal Revolution University, Tabarrok explains how a college degree...
‘Communism is the increase of the search for the Kingdom of God and His righteousness!’
Following its 100th anniversary, Communism is experiencing a public relations boon, and it has just recruited its most significant Spokesman: Jesus Christ of Nazareth. Jesus (Who, one must assume, was not consulted on the sponsorship) is said to have been the first and most vociferous Scourge of free enterprise and Advocate of socialist economics. This is precisely the argument made in France by Falk Van Gaver in his new bookChristianity vs. Capitalism: The Economy According to Jesus Christ.Perhaps Van Gaver’s...
What does the Bible say about wealth creation?
What does the Bible say about wealth creation? Can wealth creation lead to Biblical human flourishing? Earlier this year two evangelical groups, theLausanne MovementandBAM Global, released apaper exploringbiblical perspectives on the theme of ‘wealth creation for holistic transformation’ to address these questions and more. The paper begins by considering the meaning of the terms ‘wealth’ and ‘holistic transformation.’ First, they discuss the concept of wealth: Biblically speaking, wealth is a concept embodying strength, power, riches, and substance. Sometimes ‘riches’ and...
The Paradise Papers: A moral assessment of tax havens from Richard Teather
To hear politicians across the Atlantic tell it, the dark specter of Paradise is haunting the world. The Paradise Papers reveal precisely how wealthy individuals and corporations – including the Queen of England, U2’ssainted front man Bono, the less-than-saintly Madonna, and scores of others – have used offshore tax havens to limit their tax liability. The papers, which were illegally obtained from Appleby law firm and released by the International Consortium of Investigative Journalists, include 13.4 million files dating from...
Do occupational licensing laws respect human rights?
“Occupational licensing laws harm workers, as well as consumers who purchase services from professionals that require licensure,” says Tyler Bonin in this week’s Acton Commentary. “This harm is disproportionately placed on economically disadvantaged populations. Thus, when examining the effects of excessive occupational licensing in the U.S., it es apparent that these laws present an undue burden on one’s right to livelihood.” In the U.S., the number of occupations requiring licensure from state governments rose by nearly 25 percent between the...
Rev. Sirico and R.R. Reno debate the merits of free markets
Should Christians rethink the merits of free markets? Last night The King’s College hosted a debate on that question between First Things editor R.R. Reno and Acton Institute president and co-founder Rev. Robert Sirico. In his opening statement, Reno admits that free markets have done a great deal to promote human flourishing, but says that “markets are human, and like all things human in our fallen world, markets can also impede human flourishing.” Reno claims this is especially true today...
The Russian Revolution’s rebellion against spirit and man
As we reflect on the impact of the Russian Revolution on its 100th anniversary, we’re bound to hear routine admiration of its goals and ideals, even among those who duly recognize the violence and oppression that followed. It’s mon refrain, whether made by college professors or garden-variety Bernie Sanders activists: Socialism has not been tried and found wanting; it has been found difficult and not tried. Indeed, even those who oppose such a system are plicit in this sort of...
5 Facts about veterans
Today is Veterans Day, a U.S. public holiday set aside to thank and honor all those who served honorably in the armed forces both in wartime or peacetime. Here are five facts you should know about veterans in the United States: 1. The Veteran’s Administration estimates there are currently 19,998,799 living veterans (18,115,951 men and 1,882,848 women). Out of that number, 8,876,728 served in the Army, 4,264,809 served in the Navy, 3,476,021 served in the Air Force, 2,213,601 served in...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved