Remember a couple years ago when everyone was all excited about the prospects of ethanol production as the newest and greatest biofuel? Well I hope everyone has wised up to the reality that ethanol fuel is probably one of the worst things we could do from both an environmental and an economic standpoint.
First, lets give you some background about ethanol. The most common version is made from corn, one of the most important grains produced in the United States. To understand how it is made, you can visit this website that explains its production and includessome graphics. Now, having to process corn to create ethanol isn’t the problem because, as you well know, we have to refine crude oil to create gasoline and such. The problem comes when you look to see just how much energy it takes to create ethanol.
According to some studies, it can takes roughly 1.29 gallons of fossil fuel to produce just 1.0 gallon of corn-based ethanol fuel. Now, when one of the main reasons to use biofuels is to decrease CO2 emissions, this figure just makes the whole process seems outrageous. Those people who think they are saving the environment by buying “Flex-Fuel” are potentially harming it more than those with regular fossil fuel cars. Ironic, isn’t it?
The sad thing is that this same study found that corn was the most efficient biofuel. For example, switch grass was found to need 1.45 gallons of fossil fuel to produce 1.0 gallon of biofuel (one study has it as better than corn) and wood biomass needed 1.57!
Nevertheless, one must also take into account another environmental impact caused by promoting biofuel production. According to basic economics, the more of some product that is demanded, the higher price that product fetches in the marketplace. With higher potential to make money, more suppliers will then enter into the market in order to supply that product.
Now, what does that mean in our case? Well what we are seeing now is that since corn prices have risen, more people are starting to produce corn. Just last year we had the largest corn harvest here in the United States. Of course some of that was due to good crop conditions but a lot had to do with an overall increase in corn production.
Now, what this means from an environmental standpoint is that farmers are going to have more incentive to plow under land to produce corn. This might be tracks of forest on their properties or just land that, at previous corn prices, wasn’t economically feasible to plow under. For you environmentalist out there, let me break down what this means for you: Less forested land and natural habitats = less biodiversity and less CO2 sequestration = very bad.
For folks like me who tend to care more about the economic side of the issue, corn ethanol still looks like a total waste of money.
One of the major things to keep in mind is that this whole corn ethanol business is very heavily subsidized. For example, in 2006, the ethanol business got $7.0 billion to produce just 4.9 billion gallons of ethanol. That comes out to being about $1.45 per gallon of ethanol. In my opinion, that is a completely outrageous amount of money for such an impractical solution to our energy needs.
More importantly, because of these subsidy, corn prices are kept at an artificially high level. A high price of any other commodity might not be too bad but since it is corn, the results can be an increase in almost all food prices. The reason for this is that the price of corn basically controls the price of every single staple we eat in America. Don’t believe me? Well let me break it down for you.
Cereal? Made from corn.
Beef? Chicken? Pork? Fed corn.
Milk? Produced by cows that have been fed corn.
Cheese? Yogurt? Made from milk that was produced by cows that have been fed corn.
Those little fruit cups you put in your kid’s lunches? I guarantee that they are made with high fructose CORN syrup.
Funny how our lives can be so dependent on the price of just one product.
Here are some statistics you can throw around:
So why am I writing all about this? Well it is just to help you understand one of the reasons why ethanol is a bad choice that is contributing to the raising food prices worldwide. So whenever you hear a politician talk about ethanol, remember to be wary if they seem to fawning over its production. Not only is corn ethanol production wasting your tax dollars through government subsidies, it isn’t helping the environment at all.