Does Producing Ethanol Make Sense?

During the last few years, there was certainly a lot of debate of whether we should use ethanol to make gasoline or not.  Although the talk about ethanol has completely subsided, now that gas prices are on the rise again (crude oil going over $70 per barrel) certainly the dust is going to be raised again.

Many studies show that if we take into consideration all the factors (such as increasing cost of food, total cost of producing it, and others), the benefits of the ethanol become questionable.  It is because almost all of the ethanol we produce comes from corn. 

However, there are other ways to make it.  Brazilians became energy independent by using ethanol made from a sugar cane.   It is multiple times more energy rich than corn resulting in a produced ethanol at a fraction of our cost (sub $.90 per gallon).  Actually, it is so efficient that I have not yet run into a single academic article that says that energy output of ethanol produced from sugar canes is smaller than the energy invested in producing it in the first place (which is what debate about corn is all about).

Well, so how come then that we do not have ethanol from Brazil?  Since we live in this global economy, certainly we might as well use some of its benefits, right?  If it is much cheaper than ours and multiple times more beneficial to the environment than corn is, then where is it?

 Well, ask our sugar industry as well as our politicians.  The small industry that limits itself to few companies in Florida had lobbied heavily and got ethanol from Brazil heavily taxed.  It is really a shameless act if you think that an interest of a whole nation is being manipulated for the benefits of a very few.

But, hey!  We have asked for a “change,” and we voted for a change.  And if it does not happen, I think we have to vote for it again.