Home
/
RELIGION & LIBERTY ONLINE
/
Beginning of the End of Corn Ethanol?
Beginning of the End of Corn Ethanol?
Jan 14, 2026 3:13 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
A call for harmony — and a demand for truth
Pope Francis’ recent Christmas message, ‘Urbi et Orbi’, was a meditation on the roots of fraternity in the incarnation: What does that Child, born for us of the Virgin Mary, have to tell us? What is the universal message of Christmas? It is that God is a good Father and we are all brothers and sisters. This truth is the basis of the Christian vision of humanity. Without the fraternity that Jesus Christ has bestowed on us, our efforts for...
In Spain, collectivism is rising on the Right
Spain closed out 2018 by witnessing the rise of a new and growing populist party named Vox, writes Ángel Manuel García Carmona in a new essay for Acton’s Religion & Liberty Transatlantic website: Since 2016, right-wing populist parties have been on the rise in Europe: National Rally (formerly the National Front) in France, the League in Italy, the Party for Freedom in Netherlands, Vlaams Belang in Flanders, and the Alternative for Germany are but a few examples. Yet the Iberian...
What Alexandria Ocasio-Cortez gets wrong about Europe
During her interview with 60 Minutes on Sunday, newly sworn in Congresswoman Alexandria Ocasio-Cortez justified her vision of democratic socialism by invoking a caricature of Europe. When asked if she wanted to turn the United States into a version of Venezuela or the Soviet Union, Ocasio-Cortez demurred with an incredulous smile. “What we have in mind,” she said, according to the transcript, “and what of my — and my policies most closely re— resemble what we see in the U.K.,...
How economics is like Christianity
Christianity is a very other-directed religion. It requires those of us who are Christians to love our neighbors as we love ourselves (Mark 12:31). We are even required to love our enemies and appeal to God on behalf of those who persecute us (Matthew 5:44). Throughout the Bible we are also told to show concern for others, especially the poor (e.g., Proverbs 21:13, 28:27). Perhaps this is why so many Christians are drawn to the discipline of economics. At its...
Alejandro Chafuen in Forbes: Michelin short business (and personal) guide
Alejandro Chafuen, Acton’s Managing Director, International, describes in Forbes how a good businessman ought to be first a good man. The principles that guided François Michelin apply not only in business but also in personal life. Michelin is a French surname, but it is also a synonym for quality tires and restaurant mendations. This article, however, is not about the current state of this $18 pany but about some of its most important roots: the principles that guided François Michelin...
Is a no-deal Brexit a ‘moral failure’?
After a long postponement, the UK Parliament has resumed its debate leading up to the “meaningful vote” on Prime Minister Theresa May’s Brexit deal. As of this writing, the promise is predicted to fail by an historically large margin – and some clerics consider this not just unfortunate but immoral. Rev. Richard Turnbull analyses that argument, and the status of Brexit, in a new essay written the Acton Institute’s Religion & Liberty Transatlantic website. Rev. Turnbull writes: In the upper...
Samuel Gregg: Bringing natural law to the nations
“If sovereign states ordered their domestic affairs in accordance with principles of natural law,” says Acton research director Samuel Gregg at Law & Liberty, “the international sphere would benefit greatly.” During periods of resurgent national feeling, mon for enthusiasts of liberal international order and human rights activists to begin emphasizing the importance of international law and the way they think it should guide and restrain the choices of nations. Since the United Nations Assembly adopted theUniversal Declaration of Human Rights(UDHR)...
Study: Is population growth essential to economic flourishing?
Thedoom delusionsof central planners and population “experts” are well documented and thoroughly exposed, from the faulty predictions of Paul Ehrlich to the more recent hysteria among environmental activists who continue to day-dream about the glories of “a world without us.” Thankfully, due to a growing crop of calming counters from leading mainstream thinkers—from Steven Pinker to Hans Rosling—society has e a bit more resilient against the heightened hyperbole of population doom-and-gloomers. But even if such fears have been somewhat mitigated,...
Radio Free Acton: A first step towards criminal justice reform; The human cost of unemployment part II
On this episode of Radio Free Acton, producer Caroline Roberts speaks with Sarah Estelle,associate professor of economics at Hope College. Caroline and Sarah discuss the subject of criminal justice reform in light of the recently passed, bipartisan bill, The First Step Act, covering specific policies in the new bill and effects of the current criminal system. After that, award winning reporter Anne Marie Schieber continues exploring the effects of unemployment. Last week,we showed the importance of being in the right...
The particular genius of conservatism
The U.S. Constitution is a work of both the historical experience of the Founding Fathers and of the eminently Protestant culture to which they belonged. It is probably futile to try to understand the legal meaning of the Constitution without first grasping its historical and cultural significance. In the Federalist Papers, John Jay makes an unequivocal defense of mon understanding among the Framers: that the nascent republic was blessed because its citizens shared the same language, religion, and ancestries. In...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved