Posted on
Monday, August 18, 2008
Monday, August 18, 2008
Aug. 18: Bad Public Policy
I believe the EPA’s refusal to cut federal ethanol mandate in half for a year is bad public policy. I’ve been told by a friend who was formerly in the business that ethanol is a very inefficient bio-fuel since it takes a bushel of corn to produce about 2 1/2 gallons of bio-fuel. A gallon of bio-fuel consists of 10 percent ethanol. Making ethanol is expensive and, as such, is only economically feasible because it is heavily subsidized by the government.
While ethanol does result in a small savings at the gas pump, the savings is more than eaten up in higher food costs. Even before the severe flooding in the Midwest earlier this year destroyed an estimated 20 percent of our nation’s corn crop, the divergence of corn to ethanol production was causing food prices to rise. These two events have caused large price increases in corn which has led to a rise in prices of beef, pork, chicken, eggs, dairy products, bread and other staples.
I guess it boils down to cheaper gas or cheaper food. I’ll opt for cheaper food since there are alternatives to driving, but none for eating if you want to live a full and long life.
Stephen Thompson
Tyler
While ethanol does result in a small savings at the gas pump, the savings is more than eaten up in higher food costs. Even before the severe flooding in the Midwest earlier this year destroyed an estimated 20 percent of our nation’s corn crop, the divergence of corn to ethanol production was causing food prices to rise. These two events have caused large price increases in corn which has led to a rise in prices of beef, pork, chicken, eggs, dairy products, bread and other staples.
I guess it boils down to cheaper gas or cheaper food. I’ll opt for cheaper food since there are alternatives to driving, but none for eating if you want to live a full and long life.
Stephen Thompson
Tyler

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