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Ethanol False Economy

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In the words of John McCain, “corn-based ethanol has been a case study in the law of unintended consequences” (Stossel 00:00:43-00:00:48). This news would astonish most because the general public has been told that ethanol is beneficial for the United States, due to it being a renewable resource, however, that is not true. When one thinks of the qualities of a renewable resource, they think of it being beneficial to the environment, having a positive energy balance, not requiring subsidies, mandates, and tariffs to function, and should not raise the price of its main input. Most renewable resources meet these goals, corn ethanol, however, does not meet any of these goals. It is safe to call ethanol a false economy because it does not have any …show more content…

4). When ethanol was first being produced, it could not survive on its own, so ethanol producers lobbied the government to pass the Energy Tax Act of 1978, which gave fuel blenders forty cents for each gallon of ethanol blended with gasoline (Corn Ethanol Subsidies par. 3). This bill was in effect until 2004, when the Volumetric Ethanol Excise Tax Credit (VEETC), which gave gasoline blenders fifty-one cents per gallon of ethanol blended, was enacted (Corn Ethanol Subsidies par. 3). In 2008, the Farm Bill reduced the subsidy to 45 cents per gallon of ethanol blended with gasoline (Corn Ethanol Subsidies par. 3). The ethanol industry also receives tax breaks such as The Alternative Fuel Vehicle Refueling Property Credit, which provides a thirty percent tax break for gas stations that use biodiesel or 85 percent ethanol (E85) blender pumps (Federal Subsidies for Corn par. 3). These subsidies and tax breaks create artificial incentives for gasoline blenders and gas stations to use ethanol in their gas, all while rewarding ethanol producers and corn farmers with more money. These subsidies are harmful to taxpayers because these industries are fully matured and extremely prosperous, they do not need handouts that the consumers have to pay for. The ethanol industry also receives aid from the …show more content…

The ethanol production process starts with growing corn, on average an acre of corn yields close to 7,110 pounds of corn that require 140 gallons of fossil fuels to grow through the use of liquid fertilizer and powering machinery (Ethanol Fuel from Corn par. 4). The corn is harvested and transported to an ethanol refinery where it is ground, then water is added to create a mash in which enzymes break down the corn into sugar, afterward the sugar is mixed with yeast and fermented to produce ethanol (Ethanol Fuel: is ethanol par. 9-10). During the process of growing and processing the corn needed to manufacture one gallon of ethanol, it requires 131,000 British Thermal Units (BTU) to generate a gallon of ethanol while a gallon of ethanol produces only 77,000 BTU (Ethanol Fuel from Corn par. 5). The net ratio of energy for ethanol production is undesirable because ethanol has barely over half of the total energy needed to produce ethanol. Other materials can produce ethanol, such as switch grass or wood biomass, however, their energy returns are just as atrocious, needing forty-five percent and fifty-seven percent more energy to produce ethanol than it provides, respectively (Lang par. 5). This net

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