Environmental factors may end up terminating ethanol production. Langan said there's mounting evidence that indicates that, after taking into account all the energy necessary to grow, harvest, process and transport ethanol, ethanol probably requires more energy than it generates. "For that point alone, net-energy, ethanol makes little sense," Langan said, adding that he's still reviewing studies that show a 20-30% net energy gain.

Second, corn ethanol for fuel, as consumers are abundantly aware, reduces corn available for food, driving up its cost, which has rippled through the food spectrum. "Because corn is an essential feed, in the states we're guaranteeing a higher rate of inflation by using corn for ethanol," Langan said.

Equally distressing, in Langan's view, is the environmental damage caused when farmers substitute corn -- because it is a more-profitable cash crop -- for other grains and products. Moreover, displacing grazing land, and in some cases forests, for ethanol production will also have environmental costs, Langan said.

Ethanol fuel delivery and octane are two other problems. Ethanol can't be transported via the existing refinery pipe network because it picks up water and other impurities, Langan said. "It has to be transported by trucks or other means, which adds to its cost and speaks to the net-energy concern." he said. "Ethanol also delivers less energy per ounce than gasoline."

A powerful farm lobby

So then how did ethanol, with its ecological, food-chain, and net-energy concerns, become a major component in U.S. energy policy? "Ethanol does to some degree reduce oil consumption and there is a strong farm lobby in Washington, particularly in the U.S. Senate, that favors the subsidy," Langan said. Further, a federal tariff on imported ethanol also keeps ethanol's U.S. price higher than it should be, helping ethanol companies, but not the typical U.S. vehicle driver, he added.

A better policy, in Langan's view: end the ethanol subsidy and invest in other renewable energy forms (i.e., wind and solar) as well as other biofuels. Langan also backs increased tax grants to support the development of engine efficiency and auto fuel efficiency technologies.

Energy Policy Analysis: The U.S. Government's corn-for-ethanol subsidy needs to be ended, the sooner the better, but look for the powerful corn growers' lobby to fight tooth and nail to defeat an Obama Administration or McCain Administration effort to shift U.S. energy policy to more suitable renewable energy forms and technologies. Even so, if food prices continue to rise at current rates, a coalition of consumer and environment groups may amass enough political support to phase out the corn subsidy in the next decade.