Problems with ethanol?
July 24th 2007 05:55
Ethanol is supposed to be the fuel of the future. Many hope it will help the US to become more self-sufficient in terms of our energy needs and less dependent on foreign oil. According to MSNBC, however, there is already a backlash amongst some when it comes to ethanol:
Certainly, some of these concerns can be addressed. In terms of inflation, perhaps a focus on trees (cellulosic ethanol) or other types of ethanol sources can remove the burden from and impact to corn prices. However, it's also possibe that such a change could just shift the inflationary impacts to another product/industry. For example, housing costs could spike if more trees were used for fuel than for construction needs. Still, a shift to an ethanol source that is more plentiful and less critical for meeting the needs of third-world countries could help mitigate the fears of inflation hawks and poverty activists.
In terms of efficiency concerns, I would hope that work on and experience with ethanol production could improve the efficiencies over time. Also, those in the industry could choose ethanol sources that are easiest to convert into ethanol (for example, it may be easier to convert trees and wheat into ethanol than it is to convert corn into ethanol).
Regarding environmental concerns, we won't see much of an improvement there until/unless we can come up with electric or hydrogen-powered cars. I would love for that to happen, but, until it does, we're stuck using some type of gasoline or ethanol as fuel.
So ethanol won't be a panacea. However, anything that can reduce our reliance on foreign oil -- even if it is an interim measure -- is a good thing in my book.
The squawks of protest arise not just from oil companies. They're coming from economists, environmentalists, poverty fighters, and science nerds. Meet the ethanol-skeptics.
Inflation hawks. Economists and analysts have been quick to note (subscription required) that using corn to make gasoline is contributing to the greatest macroeconomic evil: inflation...
Poverty activists. Inflation in food prices can inflict severe damage on the poor, who already spend a larger chunk of their income on food than the well-off...
Efficiency freaks. For economists, engineers, libertarians, and others who believe that inefficiency and market distortions are the greatest evils, ethanol is a fat target...
Environmentalists. Environmentalists are quick to warn about how the use of petroleum and coal for energy is fouling our air and water.
Inflation hawks. Economists and analysts have been quick to note (subscription required) that using corn to make gasoline is contributing to the greatest macroeconomic evil: inflation...
Poverty activists. Inflation in food prices can inflict severe damage on the poor, who already spend a larger chunk of their income on food than the well-off...
Efficiency freaks. For economists, engineers, libertarians, and others who believe that inefficiency and market distortions are the greatest evils, ethanol is a fat target...
Environmentalists. Environmentalists are quick to warn about how the use of petroleum and coal for energy is fouling our air and water.
Certainly, some of these concerns can be addressed. In terms of inflation, perhaps a focus on trees (cellulosic ethanol) or other types of ethanol sources can remove the burden from and impact to corn prices. However, it's also possibe that such a change could just shift the inflationary impacts to another product/industry. For example, housing costs could spike if more trees were used for fuel than for construction needs. Still, a shift to an ethanol source that is more plentiful and less critical for meeting the needs of third-world countries could help mitigate the fears of inflation hawks and poverty activists.
In terms of efficiency concerns, I would hope that work on and experience with ethanol production could improve the efficiencies over time. Also, those in the industry could choose ethanol sources that are easiest to convert into ethanol (for example, it may be easier to convert trees and wheat into ethanol than it is to convert corn into ethanol).
Regarding environmental concerns, we won't see much of an improvement there until/unless we can come up with electric or hydrogen-powered cars. I would love for that to happen, but, until it does, we're stuck using some type of gasoline or ethanol as fuel.
So ethanol won't be a panacea. However, anything that can reduce our reliance on foreign oil -- even if it is an interim measure -- is a good thing in my book.
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Comment by Jim Stillman
Political Certainty
Comment by PopulistConservative
Angry Electorate
Comment by Howard
Real Crash
Ethanol (or moonshine) is not an economic alternative. It is a way to have a little fuel, in a world of starvation, and destruction of the American Way of life. Where the top 3-percent still drive, and the rest of us don't, and degenerate into a bunch of illiterate peasants. That's when the greens (environmentalists) turn to brown (brownshirts, fascists, Nazis...).
Alternatives? How about HTGR Nuclear Plants that catylytical turn water (H2O) into hydrogen fuels? The US and Germany used to have a program for that, China and South Africa still do. General Atomics has a "research" program still existing in San Diego, Cal.
Comment by PopulistConservative
Angry Electorate
I think I read the other day that Japan was getting close to having electric hybrids or some such car. They'll probably figure it out before we do.