Urging Congress to Cancel the Ethanol Tariff

reporter writes "The Wall Street Journal is urging Washington to discard the 54-cent-per-gallon tariff on imported ethanol. This tariff is effectively a subsidy for corn-based ethanol produced in the USA. Yet, producing ethanol from corn is highly inefficient and consumes 1 unit of energy for each 1.3 units of energy that burning ethanol provides. By contrast, ethanol derived from sugarcane (which is the sole source of ethanol in Brazil) yields 8.3 units of energy. Sugercane is about 7 times more efficient than corn. Some studies even show that corn yields only 0.8 unit of energy, resulting in a net loss of energy."

Comments

Ending the tariff is a good start.

[Whiney Mac Fanboy]

Ending the tariff is a good start, but it's pretty hard for corn farmer's to compete with sugar as an ethanol base material.

The obvious solution is to allow farmers to grow hemp - it's one of the easiest crops on the planet to grow (no spraying for pests, low irrigation, etc). Oil from the seeds can be used to run (unmodified) diesel vehicles, and the leftover material can be made into ethanol has four times the energy density of corn (about 2/3 that of sugar).

Oh - but this is in the land of the free - and we can't let the corn farmers compete, lest they plant a few thc bearing hemp plants in the middle of their crop. After all, a few stoners will mean the end of society as we know it.

Iowa caucus and Louisiana sugar farmers

[geoffrobinson]

First, anyone who wants to be president (pretty much every senator) doesn't want to mess around with Iowa farmers since they have an early caucus. Reducing tarriffs almost always makes sense, economically. Not politically. For example, steel tarriffs make the steel workers happy. But they increase the price of domestic toasters, cars, etc.

Someone mentioned tarriffs on sugar. The National Review (a conservative magazine) did a front cover article on this a few months ago. Similar political situation but with La. farmers. It costs America a lot of jobs in food industries which require sugar. That's why they use corn syrup. It's cheaper relative to sugar, but only because of the tarriffs.

Re:Energy efficiency

[IAmTheDave]

The thing is, this is what consumers should demand. This isn't something the governments of states or the Federal government of the United States has ANY business in.

Yeah, unfortunately, it does. I'm pretty libretarian in my views, but the American people as a whole care not for things like the environment. They want their SUVs. So, in order to get better fuel economy, one of two things must happen.

1. Govn't raises gas prices (tax?) to the level of true pain - $5, maybe $6/gallon where consumers are FORCED to demand better fuel economy or
2. Govn't raises MPG standards for all vehicles produced moving forward. Closing the SUV hole is a good start.

Consumers only care for themselves in general, and will hardly ever demand something that will inevitably cost them more money for the sake of another - like the environment, or people in third world contries (or any other household for that matter).

So unfortunately, in this case, the govn't does need to step up. I shudder to say it, but I do believe it.

No source for 7x number

[RingDev]

I have not been able to find a single peer reviewed source to back up that 7 times as efficient number. I see many references to the widely excepted 1.34 return, but I have found nothing that says 8.1 units returned. I did find one study that claimed SugarCane could hit 3.7 in production in Brazil, but that can't be directly compared to the US.

1) In Brazil manual labor can be had for $3-5/day. At that cost it can be cheaper to use a fleet of farm labor instead of a tractor. the fuel consumption requred by the work force is not included.
2) Brazil has a much larger land mass that is appropriate for growing sugar cane.
3) Ethanol has to be shipped in sealed tanks. Due to its propencity to attract water, piping it with fuel through the exist infrastructure would result in water contaminated fuel at the pump. The extra expences and fuel needed for the new delivery systems really kill the return. This is also the reason why E10 has been a pretty standard fuel in the Mid-West for years, but not on the costs. Brazil uses a much more localized distribution system (many 20k gallon plants as opposed to a centralized 10m gallon plants).
4) Ethanol has less power per volume then gas. That means those flex fuel vehicles are going to lose mileage AND power on E85. A proper E85+ designed engine could improve the power issue (Ethanol's higher octane rating allows for higher compression, which leads to more power and better efficiency).

I'm not saying Ethanol is bad, just that it isn't as great as GM wants you to believe.

Biodiesel is better (IMO) in that it can be added to the US's fuel infrastructure with no modication to the system or vehicles, it's performance is on par with petrol-diesel (ie: better than gas and ethanol).

-Rick

-Rick