Home
/
RELIGION & LIBERTY ONLINE
/
Beginning of the End of Corn Ethanol?
Beginning of the End of Corn Ethanol?
Nov 30, 2025 10:00 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
The minimum wage is speeding the robot apocalypse?
Intellectuals like Stephen Hawking and Elon Musk increasingly worry about an apocalyptic world awaiting in the not-too-distant future, when automation replaces all human work(and, in time, artificial intelligence displaces humanity). A new UK study finds the robots may have found an ally: a higher minimum wage. A looming increase in the minimum wage will likely result in a robots replacing a growing number of workers, according to the Institute for Fiscal Studies (IFS). The UK’s minimum wage – the National...
The 5 most dangerous countries to be a Christian in 2018
For the sixteenth consecutive year, North Korea is ranked as the most oppressive place in the world for Christians, according to the international non-profit ministry Open Doors. Every year Open Doors publishes the World Watch List to highlight the plight of persecuted Christians around the world. The list represents believers “who are arrested, harassed, tortured—even killed—for their faith.” The list measures the degree of freedom a Christian has to live out their faith in five spheres of life (private, munity,...
Woodrow Wilson’s radical vision for free trade
One hundred years ago today—on January 8, 1918—President Woodrow Wilson gave an address before Congress in which he outlined his goals for ending World War I. American forces had entered the war almost nine months earlier and Wilson wanted to let the world know exactly what he believed the Allies were fighting for. In the introduction to what became known as the Fourteen Points speech, Wilson said, What we demand in this war, therefore, is nothing peculiar to ourselves. It...
Why Catholic Social Teaching falls on deaf ears
“While popes and bishops preach about the duties to the poor and suffering,” says Kishore Jayabalan in this week’s Acton Commentary, “the dilemma of how to help is usually left for the laity to figure out on their own” While CST explicitly speaks of ing all, it implicitly recognizes that unlimited multiculturalism is not feasible. The burdens and costs of ing ers are real and must be shared to be made acceptable. But what happens when some refuse to do...
The tragedy of the commons
Note: This is post #63 in a weekly video series on basic microeconomics. Common resources are nonexcludable but rival, says Alex Tabarrok in this video by Marginal Revolution University. For instance, no one can be excluded from fishing for tuna, but they are rival — for every tuna caught, there is one less for everyone else. Nonexcludable but rival resources often lead to what we call a “tragedy of mons.” In the case of tuna, this means the collapse of...
What’s behind the EU triggering Article 7 against Poland?
For the first time in its history, the EU has invoked Article 7, a provision of its constitution intended to censure and punish a member nation for violating European values. Just before Christmas, the European Commission took the first step in the process against Poland over a series of laws taken by the ruling Law and Justice (PiS) that it says threatens the independence of the judiciary. Ultimately, the EU could set out changes it expects Poland to make to...
How Green economics left the West out in the cold
As they shiver through the season, this frosty winter reminds Americans and Europeans how much they have mon. However, more and more Europeans find themselves out in the cold thanks to environmentalist policies that have caused too many to be unable to afford adequate home heatingthis winter. Environmentalist policies have undermined the stability of the energy supply itself.A Swiss newspaper, the Basler Zeitung(literally the “Basel newspaper”) reports that one German pany alone “spent almost a billion euros last year on...
What Monopoly can teach us about the purpose of markets and money
The game of Monopoly has brought generations of people together, even as it’s somehow managed to tear friends and family apart. Indeed, amid all the fun and frivolity, it’s still a cut-throat game driven by luck, exploitation, and money-lust. Just like the actual marketplace, right? Alas, despite being “just a game,” Monopoly has surely done its share of feeding the various pop-culture caricatures of plete with a twirly-mustached mascot. But despite those subtle distortions, perhaps it can still teach us...
Radio Free Acton: Liz Forkin Bohannon on wealth creation and effective poverty alleviation; Upstream on Godless
On this week’s episode of Radio Free Acton, Caroline Roberts speaks with Liz Forkin Bohannon, CEO and Founder of Sseko Designs, on wealth creation and effective poverty alleviation. Then, on the Upstream segment, Bruce Edward Walker hosts a roundtable discussion with Acton staffers on Godless, a new Western show by Netflix. Check out these additional resources on this week’s podcast topics: Register for the Acton Institute’s lecture series event: Family Breakdown and the Economy Sseko Designs ‘Godless’ IMDb Learn more...
Video: Alex Chafuen discusses the causes and consequences of inflation in Latin America (Spanish)
2017 was a difficult year for many in Latin America. While Mexico endured 6.77 percent inflation, Argentina reached 24.5 percent and Venezuelans suffered a whopping 2,616 percent inflation. parison, according to the Bureau of Labor Statistics the United States saw inflation between 2.0 and 1.7 percent in 2017. Alex Chafuen, managing director of international outreach at Acton, recently addressed the issues in Latin America on NTN24 “Nuestra Tele Noticias.” Chafuen denounces how inflation feeds corruption, especially in Venezuela and Argentina....
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved