I’ve already offended farmers across the Midwest with my earlier assault on farm subsidies, so why not pile on with news that ethanol is under siege. Lauren Etter reports in today’s Wall Street Journal that ethanol isn’t all it was cracked up to be:
Little over a year ago, ethanol was winning the hearts and wallets of both Main Street and Wall Street, with promises of greater U.S. energy independence, fewer greenhouse gases and help for the farm economy. Today, the corn-based biofuel is under siege.
In the span of one growing season, ethanol has gone from panacea to pariah in the eyes of some. The critics, which include industries hurt when the price of corn rises, blame ethanol for pushing up food prices, question its environmental bona fides and dispute how much it really helps reduce the need for oil.
Of course, my Heritage Foundation colleague Ben Lieberman has been saying this for years. He wrote a paper back in March explaining why ethanol wouldn’t bring energy independence to America or be the environmentally friendly savior that many make it out to be. Worse still, it will end up costing consumers more money.
While a boon to Midwestern corn farmers and big ethanol producers like Archer Daniels Midland, ethanol has been bad news for the driving public. Ethanol usually costs more than gasoline, so adding it to gasoline increases fuel prices at the pump.
Ordinary vehicles can use gasoline blends con­taining up to 10 percent ethanol, and specially modified vehicles can use fuel that is up to 85 per­cent ethanol. However, ethanol lowers fuel econ­omy because a gallon of ethanol has only two-thirds of the energy content of a gallon of gasoline. Diffi­culties in transporting it to markets far from the Midwest and other logistical problems add further to the price of ethanol in several regions.
Unfortunately, with all-mighty Iowa and its January caucuses standing in the way, don’t expect any viable Republican presidential candidate to speak ill of ethanol anytime soon. Rudy Giuliani and Mitt Romney have proclaimed their love for it. John McCain even flip-flopped to support it. And Mike Huckabee and Fred Thompson aren’t saying anything different. This is yet another example of the sad state of the Republican status quo.
Flickr PhotoStream
BlueyTube