What Ethanol Really Does to Your Pocket

Please, read this article from the Washington Times and take a look at why we have ethanol subsidies:  Corporate welfare.  There is welfare to make people dependent on the government and there is welfare to make corporations dependent on the government.  Oh boy.  Here is the reasoning behind a 5% increase in ethanol production:

  • To help meet sales targets for 36 billion gallons of ethanol by 2022
  • Reduces dependency on Mideastern oil
  • Cleaner air
  • $3.7 billion in “energy security benefits

The nasty side here is the side effects:

  • 18 billion in additional fuel costs by 2022
  • a 5% increase in Ethanol concentration will lower fuel efficiency by about 5.3%
  • Higher repair bills as engines not designed to handle higher ethanol levels will deteriorate faster (FYI, we the customers will have to pay for this because using unapproved [by the manufacturer] fuel is passed along to us)
  • Higher food prices

I am not a fan.  Chemically, ethanol has 2/3rds the energy of gasoline, so an increase will inevitably lead to lower fuel efficiency immediately.  While this will decrease pollution from gasoline (always a good thing) the increased cost of ethanol as food production and fuel production wage war will go far to increase the cost of gasoline (of which we will be buying more) and food.  This proposal needs to be scrapped and if implemented, done so in a manner that makes more sense for the consumer.

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One Response to What Ethanol Really Does to Your Pocket

  1. Pingback: Tweets that mention What Ethanol Really Does to Your Pocket « A Slice of Polis -- Topsy.com

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