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Documented Essay: Why Ethanol Is A Farce
Tuesday, 04 December 2007

    From both a scientific and economic standpoint, ethanol is a waste of resources. While many may claim that ethanol is the ultimate solution to the fuel oil crisis, they do not realize some of the many problems that the substance has. While ethanol can be useful in applications other than fuel, it is not a viable option for the United States, as it is not cost effective or environmentally friendly. Everyone from chemical engineers to common citizens recognize some of the problems. Citizens of various towns do not want these plants in their towns, as they use many millions of gallons of water that could possibly run out. While ethanol is purported to be the ultimate solution to saving the environment by government officials and oil corporations alike, it is actually a scam by government officials and oil companies to line their pockets, and cheat the taxpayers.

    From a scientific standpoint, it is not. The burning temperature of ethanol is far lower than gasoline. In fact, ethanol needs 99,119 British Thermal Units of heat to produce a gallon, which will yield 77,000 BTUs of energy when burned in an automobile. Furthermore, ethanol is produced by burning fossil fuels as ethanol cannot be burned to produce ethanol (Dvorak). This means that one gallon of gasoline will propel a vehicle longer than one gallon of ethanol, due to ethanol having far less energy stored within it per gallon. Furthermore, a scientific concern for the environment is that for every pound of ethanol produced, an excess pound of carbon dioxide is released into the atmosphere (Reisch 32).

    Economically speaking, the ethanol situation is a mess. While ethanol may be cheaper at the gas pumps, it is not cheaper to the end buyer, as their tax money is being used to hide the cost of the ethanol. Some of the cost involves paying off farmers to grow or not grow corn. The government still tries to manipulate the economy for everyone's good, while it is actually stopping John Locke's invisible hand of the capitalistic economy from working. This subsidized corn is transported to an ethanol factory, some of which are located far flung from the corn fields. This means that more money has to be spent to ship in the raw corn needed to make the ethanol. The corn is finally converted into ethanol, which costs around $2.24 per gallon, versus $0.63 per gallon for producing gasoline (Dvorak). Once produced, the ethanol has to be shipped out to the pumps, but it cannot be transported via pipeline as it is corrosive, and it picks up water in such pipelines. Instead, the ethanol has to be transported by trains and trucks to places all over the country, spending yet even more money on fuel to transport the ethanol. The major misconception is that ethanol is cheaper at the pump than gasoline. This is due to the massive government subsidies taken from tax dollars. Ethanol is costing consumers more at the pumps, even though it appears to be cheaper. In fact, consumers currently need to add another $0.51 per gallon to the cost of ethanol to get a rough idea of the real price they are paying. This $0.51 adds up to be around $3 billion annually in government subsidies (Tyner and Quear). Another set of disturbing aspects related to ethanol come from an article by James Eaves of Laval University, and Stephen Eaves of Eaves Devices, which provides several good arguments:

"When we assume the ethanol production process is fully renewable, it would take all the corn in the country to displace about 3.5 percent of our gasoline consumption — only slightly more than we could displace by making sure drivers’ tires are inflated properly. There are also ethical considerations. In particular, the United States is responsible for over 40 percent of the world’s corn supply and 70 percent of total global exports. Even small diversions of corn supplies to ethanol could have dramatic implications for the world’s poor, especially considering that researchers believe that food production will need to triple by the year 2050 to accommodate expected demand. Furthermore, ethanol would not necessarily be a more reliable source of fuel. By displacing gasoline with ethanol, we are displacing geo-political risk with yield risk, and historical corn yields have been about twice as volatile as oil imports. Finally, because high temperatures can simultaneously increase fuel demand and the cost of growing corn, the supply response of ethanol producers to temperature-induced demand shocks would likely be weaker than that of gasoline producers. (27)."

    Thus the economic issues are numerous, alongside ethical issues that need to be addressed. Considering the fact that the United States is interested in taking care of the poor, how will it look if the poor are unable to eat as the United States increases the cost of all of their exported foods to fund ethanol subsidization?

    The economic and environmental aspects of this fuel are obvious. Many politicians benefit from promoting and subsidizing such programs because they can get “gifts” from the manufacturers they subsidize, as well as campaign contributions. Cal Dooley, president of the Grocery Manufacturers Association says that “Many policy makers were seduced by ethanol,” and it appears that many others still are (Etter A8). Whether or not the program works or is cost effective does not matter to them, as long as they get re-elected, and can line their pockets with taxpayer money at the same time. Those few politicians and figures that oppose such programs are usually scoffed away, as the pro-subsidy politicians continue banter and propaganda to promote their latest scheme. Ethanol is one such scheme. Governor Matt Blunt has authorized the construction of an ethanol plant in the town of Rogersville, Missouri. Besides the fact that the citizens of the area totally oppose such a plant, there are several issues that make Rogersville a poor choice for an ethanol producing facility. The first is that the owner of the company who got permission to build is none other than Greg Wilmoth, Blunt's cousin. Wilmoth did his best to dispel any worries by stating that “No member of the Blunt family … has any direct or indirect financial or personal involvement with Gulfstream Bioflex Energy or any of my other businesses.” This is impossible, as government subsidies are in play from the state of Missouri, headed by Matt Blunt (Wagner). This means that it is highly likely Wilmoth will be making money off the taxpayers through subsidies. In such a setup, it is inevitable that Matt Blunt will end up pocketing or campaigning with any kickbacks he receives from the plant. Another problem is that these ethanol plants use up to 1.2 Billion gallons of water daily (Fellin). This plant plans to draw straight from the water table that is already dropping every year. In the event a drought occurs, or ethanol production is increased, the possibility of water shortage in Rogersville is very possible. Whatever the case, the citizens of Rogersville are taking the matter to court, which has been unsuccessful thus far.

    In the end, ethanol is nothing but a scheme created by the government and oil companies at the expense of the taxpayers and the environment. Thanks to the various concerns, ethanol is busted as an alternative fuel. Thanks to the production processes that waste energy and pollute the earth, as well as the negative impact of subsidization, ethanol is nothing but a farce. Greedy politicians behind the ethanol initiatives may do their best to make ethanol sound like the ultimate way to power a vehicle, but they are full of deception. If a politician supports ethanol, they are either conspiring with the production company, or are not totally informed about the downsides economically and environmentally. The quest for alternative fuels is a noble cause, but when a fuel is found to be below the requirements it is supposed to supply, it should be abandoned, and the next source investigated.

Sources:

Dvorak, Blake. “Ethanol's Nine Lives.” The American Enterprise 12 September 2003. 15 October 2007.

Eaves, James, and Stephen Eaves. “Neither Renewable Nor Reliable.” Regulation (2007): 24-27.

Etter, Lauren. “Politics & Economics: Ethanol Industry Is Losing Clout In Congress As Food Prices Climb.” The Wall Street Journal 10 November 2007.

Fellin, Edward. “News-Leader.com | Readers' Letters.” 15 October 2007.

Reisch , Mark. “A Rational Approach to Energy.” Chemical And Engineering News 85.43 (2007): 32.

Tyner , Wallace, and Justin Quear. “Comparison of a Fixed and Variable Corn Ethanol Subsidy.” Choices Article 2006. 15 October 2007.

Wagner, Matt. “Blunt Brothers Deny Connection To Cousin's Ethanol Plant.” Springfield Business Journal 13 November 2006. 15 October 2007.


Comments
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Bekah Holmes   |64.22.242.xxx |2007-12-13 22:15:22
I've been thinking that too. Looks like this was one of your papers, good job!
Craig   |74.136.208.xxx |2008-02-13 23:54:42
What about sugar based ethanol?

If import duties were dropped there would be
plenty of supply at reasonable prices.
Joe Walmach   |65.220.90.xxx |2008-04-21 10:57:44
Great article. You would think we would have remembered the lesson from 30 years
ago when we went down the ethanol path but no. Once again we learn nothing from
history and repeat our failures. As Albert Einstein once said. "Insanity:
doing the same thing over and over again expecting different
results."

Joe
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