Wednesday, May 21, 2008

Corn Ethanol Doesn't Seem an Answer

Even though the use of corn ethanol as a gasoline additive is both uneconomical and counter-productive, the farm industry has pushed through a 54-cent-per-gallon subsidy for its production. This is likely due to the massive campaign contributions and lobbying expenditures of the large-scale farm companies. Most experts now agree corn ethanol will not help our energy problems because it uses as much energy to produce it as is gained from its use. But worse, the expanded use of corn for etanol production has pushed up the cost of corn, which in turn has pushed up the cost of corn for human consumption and raised cattle prices at the same time. And while the U.S. is subdizing domestic corn ethanol production, it has placed a 50-cent per gallon tarriff on Brazilian sugar cane ethanol, making it uneconomical to import.
For more see: Mother Jones and Financial Sense and Brazilian Ethanol

Video Length 4 min 44 sec

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