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Understanding The Full Costs Of Corn Ethanol
By Mr Ethanol | October 15, 2007
The New Daedalus:
Combining Sugar Protectionism with Corn subsidy created a product searching for a use. Corn syrup came out of nowhere to replace sucrose in thousands of products. Because it is metabolized differently than sucrose, its pervasive use is suspected by many to be a contributor to the diabetes epidemic.
Now this subsidized corn syrup is being priced out of the market amid huge distortions in productions of all crops, as farmers switch crops to take advantage of the subsidized corn bubble. Maybe it is time we just fixed the mess by ending sugar tariffs. Whatever benefits those domestic sugar producers were supposed to get from protectionism was lost when it priced corn syrup into the market in direct competition.
This would aid Caribbean and Central American foreign policy, reduce foreign aid requirements, and improve health (as producers switched away from corn syrup). It would also, of course, free up the crops dedicated to corn syrup for corn ethanol – without requiring subsidies. This might even change the economics of corn ethanol to make sense.
It still wouldn’t make Corn Ethanol useful as a Carbon / Fossil Fuel / Energy Independence policy. More.
Topics: Ethanol, Investing, Prices |
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