...the percentage of the U.S. corn crop devoted to ethanol has risen to 20% from 3% in just five years, or about 8.6 million acres of farmland. Reaching the President's target of 35 billion gallons of renewable and alternative fuels by 2017 would, at present corn yields, require the entire U.S. corn harvest.
No wonder, then, that the price of corn rose nearly 80% in 2006 alone. (See the chart nearby.) Corn growers and their Congressmen love this, and naturally they are planting as much as they can. Look for a cornfield in your neighborhood soon. Yet for those of us who like our corn flakes in the morning, the higher price isn't such good news. It's even worse for cattle, poultry and hog farmers trying to adjust to suddenly exorbitant prices for feed corn--to pick just one industry example. The price of corn is making America's meat-packing industries, which are major exporters, less competitive.
In Mexico, the price of corn tortillas--the dietary staple of the country's poorest--has risen by about 30% in recent months, leading to widespread protests and price controls. In China, the government has put a halt to ethanol-plant construction for the threat it poses to the country's food security. Thus is a Beltway fad translated into Third World woes.
And, even they recognize that this may not do much for energy independence or air pollution, -
As for the environmental impact, well, where do we begin? As an oxygenate, ethanol increases the level of nitrous oxides in the atmosphere and thus causes smog. The scientific literature is also divided about whether the energy inputs required to produce ethanol actually exceed its energy output. It takes fertilizer to grow the corn, and fuel to ship and process it, and so forth. Even the most optimistic estimate says ethanol's net energy output is a marginal improvement of only 1.3 to one. For purposes of comparison, energy outputs from gasoline exceed inputs by an estimated 10 to one.
But what about global warming, where ethanol, as a non-fossil fuel, is supposed to make a positive contribution? Actually, it barely makes a dent. Australian researcher Robert Niven finds that the use of ethanol in gasoline--the standard way in which ethanol is currently used--reduces greenhouse gas emissions by no more than 5%. As Messrs. Taylor and Van Doren observe, "employing ethanol to reduce greenhouse gases is fantastically inefficient," costing as much as 16 times the optimal abatement cost for removing a ton of carbon from the atmosphere.
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