Ethanol

Abstract

Energy is the lifeblood of modern society, and industrial nations are largely dependent on oil to maintain global trade and economic activity. Highly mechanized agriculture is no exception. Without transformative changes, we will eventually reach the age of “peak oil,” the point at which the volume of global oil production begins to decline. In response, federal programs have promoted a shift to liquid biofuels and biomass energy derived from farms. The Renewable Fuel Standard created by the Energy Policy Act of 2005 and expanded by the Energy Independence and Security Act of 2007, for instance, boosted production by mandating that up to 36 billion gallons of ethanol be blended into gasoline by 2022. This figure includes allocations for cellulosic ethanol, biomass-based diesel, and advanced biofuel. The Energy Independence and Security Act: Charting a New Direction for America’s Energy Policy,” United States Senate Committee on Energy and Natural Resources, web edition, accessed September 21, 2011. But through various Farm Bills, taxpayers have been investing in this industry for decades via corn subsidies, import tariffs, tax credits for every gallon of ethanol blended with gasoline, loan guarantees, construction cost shares, and gas pump upgrades. This excess of cheap agricultural products has driven much of the increase in ethanol production. And for politicians and lobbyists, ethanol became a sacred cow, untouchable, because of beliefs that these public investments would (1) support farmers, (2) reduce dependence on foreign oil (currently about 25 percent of US petroleum consumption—a record low in recent decades US Energy Information Administration, “Oil: Crude and Petroleum Products Explained,” updated May 8, 2017, https://www.eia.gov/energyexplained/index.cfm?page=oil_imports.), (3) cut greenhouse gas emissions, and (4) strengthen national defense.