Home
/
RELIGION & LIBERTY ONLINE
/
Beginning of the End of Corn Ethanol?
Beginning of the End of Corn Ethanol?
Dec 31, 2025 3:14 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
Death And Dying Just Got Harder Thanks to Obamacare
I don’t know anyone who doesn’t believe that hospice is a good idea. The medical and emotional support offered by hospice workers to the terminally ill and their families is invaluable. And thanks to the Affordable Care Act, hospice is going away. Michigan Hospice of Holland is closing their doors. Their executive director explains: The biggest issue under the Affordable Care Act is…that we’re going to see cuts in reimbursement- it’s going to be at least 12 percent. We projected...
7 Figures: American Time Use Survey
Every year the Bureau of Labor Statistics releases the American Time Use Survey (ATUS), which measures the amount of time people spend doing various activities, such as paid work, childcare, volunteering, and socializing. Here are seven figures you should know from the latest report: 1. On the days they worked, employed men worked 53 minutes more than employed women. This difference partly reflects women’s greater likelihood of working part time. However, even among full-time workers, men worked longer than women–8.3...
Religious Liberty? Obama’s Not Done Yet
If you thought the Obama Administration had taken its final swipe at religious liberty with the HHS mandate, think again. At Catholic Vote, John Shimek tells us that there is a new attack on American’s religious liberty, and it won’t affect just Catholics. According to Shimek, the social media website Buzzfeed announced that the White House is drafting an executive order that will bar federal contractors from discriminating against anyone based on gender identity and/or sexual orientation. President Obama is...
How Employing Those with Disabilities Transformed a Business
Those with disabilities face unique challenges in the workplace and with regards to vocation.As I recently wrote regarding the story of Jamie Bérubé, a young man with Down syndrome, we oughtto be more attuned to these challenges and respond accordingly, rejecting limited notions of “value” and instead viewing all human persons as creators and contributors. I was therefore heartened to read the story of Randy Lewis, a senior vice president at Walgreens, whose son, Austin, faced similar obstacles as someone...
7 Figures: Trafficking in Persons Report
Last week the State Department released the 2014 Trafficking in Persons Report, a congressionally mandated report that looks at the governments around the world (including the U.S.) and what they are doing bat trafficking in persons – modern slavery – through the lens of the 3P paradigm of prevention, protection, and prosecution. Here are seven figures you should know from the latest report: 1. The report estimates that only 44,758 victims of trafficking were identified in the past year, out...
Fr. Raymond de Souza on the Unity of Liberties
Writing for Canada’s National Post, Acton University lecturer Fr. Raymond de Souza calls our attention to the 25th anniversary this year of the defeat munism and observes that “there are new questions about the unity of liberties.” In the 1980s, he writes, “when in the Gdansk shipyard the workers began to rattle the cage munism, they demanded economic liberties (free trade unions), personal liberties (speech, the press), political liberties (democracy), legal liberties (against the police state) and religious liberty (the...
Iraq To Christians: ‘Submit Or Face The Sword’
There are virtually no Jews left in Iraq. There used to be Jews there – 130,00+, but most have fled, many to Israel. And now, one Christian leader in Iraq fears Christians will suffer the same (or a worse) fate. Baghdad’s Monsignor Pios Cacha made a grim prediction. He said that his Iraqi munity was experiencing the kind of religious cleansing that eradicated the country’s once-thriving munity half a century before. His rather prophetic words made headlines in Lebanon’s DailyStar:...
Why Isn’t the Victim Compensation System Compensating Victims?
Restorative justice is a theory of justice that emphasizes concepts such as reconciliation, forgiveness, and healing. There are, as Jordan Ballor has explained, a plurality of restorative justice movements. Yet one theme that is found in almost all forms is victim restitution, such pensation funds for those who have been victims of crimes. pensation rarely occurs, though. According to Justice Fellowship, less than 3 percent of violent crime victims ever receive monetary assistance from pensation funds for costs like medical...
5 Facts About Acton University
This is the week for the annual Acton University, a unique educational experience focused on the intersection of liberty and morality. Here are five facts you should know about Acton U. 1. Acton University is a four day annual conference on liberty, faith and free-market economics held in Grand Rapids, Michigan. 2. Each even includes nine sessions in which attendees can create a customized learning path from 100+ courses taught by 55+ international, world class experts. 3. The conference is...
Issues of Justice
What would it take to make a society fully just rather than merely settling for moving society toward justice? In this week’s Acton Commentary, John Addison Teevan considers that question and how we can respond to social justice demands in biblical terms. Seeking the peace and harmony (Shalom) of God as the highest good for man, Keller indicates that doing justice means “to live in a way that generates a munity where human beings can flourish … The only way...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved