Ethanol as Renewable Energy

In recent years, particularly after various federal and state subsidies and mandates were passed, ethanol (ethyl alcohol) fuel has become a popular bio-fuel alternative to gasoline. In the U.S., ethanol is typically produced through a process of fermenting and then distilling corn crops.

Proponents of ethanol (mainly corn producers, ethanol investors, and politicians from agricultural states) argue that it burns cleaner than petroleum-based gasoline, decreases U.S. energy dependence on oil-producing countries, helps to reduce the price at the pump, and creates more jobs in rural America. They usually don't mention the healthy subsidies and mandates necessary to get some of the public to start using ethanol.

The opposition to ethanol is a unique alliance of environmentalists, meat producers, producers of foods dependent on corn, humanitarians, free marketers, fiscal hawks, and others. Various arguments are used by these opponents of ethanol, such as the following:

  • The amount of energy (in the form of oil and other sources) going into the production of ethanol results in little to no net gain in energy.
  • The production of ethanol increases world food prices.
  • It is unfeasible for the U.S. to ever become truly energy-independent through ethanol.
  • Ethanol production degrades the environment, causing more harm then good.
  • Real energy advances will come not through subsidies and mandates, but through free market competition.
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Williams argues ethanol is "not only costing us a lot of money, it's also wiping out fish and wildlife habitat, and polluting our air, soil, and water." Williams goes on to address several issues surrounding the ethanol debate, such as the politics surrounding the 1990 amendments to the Clean Air Act.

This brief research paper analyzes and compares the merits of biodiesel versus ethanol and concludes, "Transportation biofuels such as synfuel hydrocarbons or cellulosic ethanol, if produced from low-input biomass grown on agriculturally marginal land or from waste biomass, could provide much greater supplies and environmental benefits than food-based biofuels."

Brown provides some concrete facts about the convergence of the food and energy markets, and the implications of such a convergence. He demonstrates that E85 is raising the price for grains - the greatest impact of which is felt by the world's poor.  He calls for "less costly alternatives" such as increasing our utilization of wind power.

This article summarizes some of the key findings of Cornell University agricultural scientist David Pimentel, who concludes that E85 is not a sustainable fuel source.

"The United Nations Climate Conference in Bali, Indonesia, wrapped up on December 14. During the conference, debate intensified over whether to include in any climate change agreement greenhouse gas emission targets for developed countries. While most alternative sources of energy are not economically viable at this point, environmentalists and policymakers are hopeful for technological...

Istook combines the findings from multiple distinguished authors to show how ethanol is harming not only U.S. consumers, but also consumers abroad (especially those in third world countries). He argues that the U.S. must end the subsidy of ethanol, but acknowledges the difficulty involved in such a move.

This article explains that E85, as it is currently manufactured in the U.S., does not present a viable alternative to petroleum use. According to this article, the process of making ethanol yields a net gain of only 10% in energy when it is completed (subtracting energy required to produce E85). However, the article does cite a few situations in which ethanol may be of use.

"The federal government has done much to boost the U.S. ethanol industry and is largely responsible for the growing use of this costly fuel additive. Now, Congress should do something for America's drivers by ending tariffs that limit imports of cheaper ethanol that could help lower pump prices. Even by the standards of special-interest-driven Washington, the ethanol industry gets an unusually...

UC Berkeley geoengineering professor Tad W. Patzek explains that the costs involved in producing E85 far outweigh its benefits. He goes on to describe the effect that ethanol production has on land use (or, rather, overuse) and concludes with a few suggestions for pursuing other ("alternative") sources of energy.

After discussing and dismissing four major myths associated with biofuels, Holt-Gimenez concludes, "A global moratorium on the expansion of biofuels is needed to develop regulatory structures and foster conservation and development alternatives to the transition. We need the time to make a better transition to food and fuel sovereignty."

This article succinctly dispels the myth that Brazil's sugarcane ethanol success could ever be replicated in the U.S. by pointing to fundamental differences between the two countries.

"There are two prominent justifications for biofuel subsidies—to reduce gasoline consumption and carbon dioxide emissions. But how much does it cost to achieve these goals? According to the Congressional Budget Office (CBO) ..., subsidies for biofuels are costly to consumers and have high abatement costs for mitigating carbon dioxide emissions."

"We are witnessing the beginning of one of the great tragedies of history. The United States, in a misguided effort to reduce its oil insecurity by converting grain into fuel for cars, is generating global food insecurity on a scale never seen before."

Chart or Graph

"The CBO calculated the costs to taxpayers of using ethanol to reduce gasoline consumption by one gallon to be $1.78 for ethanol made from corn and $3.00 for cellulosic ethanol. Based on the tax policy in place through last year, the cost of reducing an equivalent amount of diesel fuel using biodiesel is $2.55.

According to the CBO, using biofuels to reduce greenhouse gas emissions by...

"Figure 1 illustrates the crucial idea that biofuel production affects many different markets, including markets for inputs (e.g., land and water) as well as markets for agricultural products and biofuel coproducts (e.g., food and animal feed). For this reason, many factors can affect the costs of producing biofuels and the prices at which they can be sold. Similarly, many factors can affect...

"Ethanol has been produced for fuel in the United States for at least 26 years. The industry launch was initiated by a subsidy of 40 cents per gallon provided in the Energy Policy Act of 1978. Between 1978 and today, the ethanol subsidy has ranged between 40 and 60 cents per gallon. The history of subsidy changes is provided in Table 1."

The chart describes the Ethanol...

"Several factors have limited growth in E85 sales. From 2004-2008 E85 accounted for less than 1% of U.S. gasoline demand. ... Among the more important are the limited number of compatible vehicles and the small number of fueling stations. But perhaps the most significant factor in preventing E85 consumption is its high cost at the pump when compared to E10 gasoline. E85 has been more expensive...

"The high profitability of ethanol has attracted significant new investment in the industry, as shown in Figure 3. Ethanol production grew 1 billion gallons in 2006 and is expected to grow 3 billion gallons in 2007, a doubling in two years. Because of this current and expected future growth in ethanol production, corn prices skyrocketed in fall 2006. In just a few months, prices were up from...

Analysis Report White Paper

"The environmental impacts of biofuels are devastating. Rapid expansion of fuel-related crop cultivation has accelerated deforestation, biodiversity loss, and global warming pollution. Increased water pollution from agricultural chemicals, and depletion of soil and water resources are additional problems. Policy measures to differentiate biofuels by environmental impact are weak or non-...

This report concludes that "it is neither moral nor constructive to shift major amounts of the world's food supply to fuel production when significant elements of the world's people remain ill-fed. It is neither moral nor constructive to needlessly destroy broad tracts of wildlands for fuel crops when alternative energy sources, such as nuclear power, are not being used. And it is a dreadful...

This analysis is quite lengthy, but Koplow essentially concludes, "The picture that emerges from our analysis on biofuels markets illustrates not only that subsidies to ethanol and biodiesel are pervasive and large, but that they are not a particularly efficient means to achieve many of the policy objectives for which they have been justified."  Pages 56-61 contain the key findings and...

This report acknowledges that the growing ethanol market has broad policy failures. It states that "without appropriate information, incentives, and rules, the biofuels industry is likely to expand production in environmentally harmful ways." This report proposes an index to track the environmental effects of biofuels.

This study examines the cancer risks and ozone-related health consequences of ethanol use in vehicle fuel. Jacobson states, "due to its ozone effects, future E85 may be a greater overall public health risk than gasoline."

"This publication reviews the history of U.S. ethanol policy, explains the economics of ethanol production in today's market environment, and outlines some policy alternatives that could be considered for the future."

This twelve-page article investigates the claims that production of E85 (produced from corn) results in a net-positive return in energy. The authors ultimately found: "Energy outputs from ethanol produced using corn, switchgrass, and wood biomass were each less than the respective fossil energy inputs. The same was true for producing biodiesel using soybeans and sunflower, however, the energy...

"The Federal government provides a range of subsidies, tax incentives, and regulatory mandates to promote the use of ethanol and other renewable fuels into the national gasoline pool. ... Until recently, ethanol use was limited by law to a maximum of 10% of the gasoline pool, or as a specialty fuel at high levels of concentration (a 70-85% blend called E85) for use only in 'flex-fuel' vehicles...

“Energy issues are rising to the top of the agenda in many states, compelling elected officials to take positions on topics as wide ranging as subsidies to biofuels producers and restrictions on mercury emissions from coal-burning power plants. Energy issues...

Taylor and Van Doren equate corn ethanol to a religion, arguing that it, "...is more a religion than a reasoned proposition." They go on to explain how production of corn ethanol really only benefits the corn farmers and investors in ethanol plants. They also argue that ethanol will in no way help prevent terrorism or increase our national security.

As the title suggests, this piece traces the roots of the sustainability movement and details the various areas that the sustainability mindset especially affects. According to Ricketts, "'Sustainability' connects to these antecedents, but has more direct...

Video/Podcast/Media

"Mark Jacobson is a leading expert in wind energy and the atmosphere. He hears some of the claims being made on behalf of E85 - that it's supposed to be cleaner, that it will reduce ozone-forming pollution and the release of harmful compounds like benzene, toluene and xylene. Mark's research...

Podcast: Mark Jacobson: The Truth About Ethanol
Mark Jacobson
PodTech
April 6, 2007

"Mark Jacobson is a leading expert in wind energy and the atmosphere. He hears some of the claims being made on behalf of E85 - that it's supposed to be cleaner, that...

The EPA's role is to develop regulations based on science from laws passed by Congress to protect human health and the environment.

"New research indicates that corn-based ethanol is more costly to human health and the environment than gasoline. The research also indicates that biofuels from non-food crops may be less costly."

Primary Document

"Any worthy idea can withstand and even be improved by naysayers; scolds and skeptics play the useful role of pointing out obvious flaws. The biofuels industry has no more persistent, articulate, and scathing critic than David Pimentel, professor emeritus of entomology at Cornell University."

Pimentel defends his findings that state that ethanol uses more energy than it produces. He...

To move the United States toward greater energy independence and security....

The Energy Policy Act of 1992 (EPACT) provided for two additional gasoline blends (7.7% and 5.7% ethanol). It defined ethanol blends with at least 85% ethanol as "alternative transportation fuels." It also required specified car fleets to begin purchasing alternative fuel vehicles, such as vehicles capable of operating on E-85 (a blend of 85% ethanol and 15%...

This law established the Renewable Fuel Standard. It mandated gasoline to contain 7.5 million gallons of renewable fuel annually by 2012.

This site explains the fundamental portions of a bill which apportions large amounts of funding to ethanol producers.

In the 2007 State of the Union address, President George Bush asked Congress and America to "join him in pursuing the goal of reducing U.S. gasoline usage by 20 percent in the next ten years - twenty in ten."

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