Hidden costs of corn-based ethanol

Diverting corn from food to fuel could create unprecedented turmoil.

from the May 21, 2007 edition

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Politicians like to say that ethanol is environmentally friendly, but these claims must be put into perspective. Although corn is a renewable resource, it has a far lower yield relative to the energy used to produce it than either biodiesel or ethanol from other plants. Moreover, ethanol yields about 30 percent less energy per gallon than gasoline, so mileage drops off significantly. Finally, adding ethanol raises the price of blended fuel because it is more expensive to transport and handle.

Lower-cost biomass ethanol – for example, from rice straw (a byproduct of harvesting rice) or switch grass – would make far more economic sense, but large volumes of ethanol from biomass will not be commercially viable for many years. (And production will be delayed by government policies that subsidize corn-based ethanol.)

American legislators and policy­makers seem oblivious to the scientific and economic realities of ethanol production. Brazil and other major sugar cane-producing nations enjoy significant advantages over the US in producing ethanol, including ample agricultural land, warm climates amenable to vast plantations, and on-site distilleries that can process cane immediately after harvest.

Thus, in the absence of cost-effective, domestically available sources for producing ethanol, rather than using corn, it would make far more sense to import ethanol from Brazil and other countries that can produce it efficiently.

American politicians may be thrilled with the prospect of corn-derived ethanol, but if they don't adopt policies based on science and sound economics, consumers around the world may suffer.

• Colin A. Carter is a professor of agricultural and resource economics at the University of California, Davis. Henry I. Miller, a physician and a fellow at the Hoover Institution, was a Food and Drug Administration official from 1979 to 1994 and is author of "The Frankenfood Myth." ©2007 Los Angeles Times Syndicate.

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