EWG (Environmental Working Group) found that the largest chunk of Federal subsidies for renewable energy has been for ethanol. The corn based ethanol industry received $3 billion in Federal tax credits in 2007, more than four times the $690 million in tax credits for all other forms of renewable energy including solar, wind and geothermal.
Some critics argue that Federal subsidies for corn based ethanol have not produced the results needed to solve our current energy crisis and dependency on foreign oil.
One important factor in ethanol production is water consumption. One state, Minnesota which keeps records on water consumption reports that on average it takes 4.5 gallons of water to produce one gallon of ethanol. Not included in this report is the cost in water usage needed to irrigate the corn to produce the feedstock.
Enter the environmentalists who argue that ethanol production is polluting our nation's water, eroding our soil, plowing up precious habitat and worst of all most likely contributing to global warming. There is growing concern that ethanol will not solve our growing energy problem and it was previously intended.
Should we continue with our current subsidies for ethanol?
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Reader Comments (Page 1 of 1)
1-12-2009 @ 4:20PM
vince demarco said...
The ethanol subsidy is the greatest steal pf taxpayer money in history.This represents the largest transfer of wealth from consumers to the richest people in the US.it is the work of the most corrupt congress that money has ought.
1-12-2009 @ 5:55PM
Iridium said...
Corn based Ethanol is the worst idea in the history of civilization. The entire corn based ethanol industry needs to be shut down.
End the subsidies now and let the natural market take over. If there is really a true market for ethanol then you won't need subsidies.
Not to mention that 10% Ethanol gas is ruining the fuel systems of all cars not made to handle ethanol along with just about every piece of lawn equipment ever made and boats. Hey you got boat that runs on gas, guess what its ruined unless you can get gasoline without ethanol added. Good luck with that.
1-12-2009 @ 6:10PM
Mentallect said...
Corn based ethanol is not a solution. Sugarcane based ethanol, solar, and wind energy is promising. Corn-based ethanol is a giveaway to lobbyists, but doesn't offer any hope to ween the US off oil. Maybe this is why conservatives support corn based ethanol so much. We need demand-side politicians instead of failed supply-side lunacy.
1-12-2009 @ 9:22PM
Ray Clark said...
This is a perfect example of how horsetrading by our congressmen is destroying our country. They feel that they have to give something desired to the farm belt. Unfortunately corn derived ethanol is not an alternate fuel at all. At least one gallon of petroleum is needed to produce one gallon of ethanol. Also the polution produced is far worst that that of petroleum because for every gallon of ethanol that is used a gallon of petroleum is also used.
1-13-2009 @ 12:54PM
michaelmustelier said...
Connie, most of the water needed to irrigate the corn comes from rain.
There are many other better crops to use- hence the advancement of sorghum.
The byproducts of ethanol are what make it a good deal. For example, all that comes out of the alcohol fuel making process is co2, which you can funnel into greenhouses growing food and produce extra plantings of food. All part of David Blume' s thinking- alcoholcanbeagas.com
"It is always possible to do a good thing stupidly." Barry Commoner, when asked about using too much energy to make ethanol worth it.
1-13-2009 @ 12:56PM
michaelmustelier said...
Here's what an ethanol guy, Jeff Broin, has to say about subsidies.
"In 2007, the tax incentive, that tax break, was $3.3 billion, but the ethanol industry returned $4.6 billion in tax revenue to the Treasury," Broin says. "We saved $8 billion in farm payments because we eliminated farm payments for the first time in almost 40 years. We saved the consumer $40 to $60 billion in gas prices with extra supplies that kept prices down. We added $47 billion to the (Gross Domestic Product)."
No, I am not a tool of big agribusiness. These numbers are what they are and if they are wrong, someone should tell me where and why.