Posts tagged “ethanol exports”
Were U.S. Taxpayers Subsidizing Ethanol Exports?
Over the past couple of years, U.S. ethanol exports have soared. Last year a news article in Financial Times charged that these exports were being subsidized with U.S. tax dollars. The U.S. ethanol industry strongly denied this, but I wrote several articles on the controversy:
To be clear, it wasn’t the exporting of ethanol that concerned me, it was the idea that taxpayers were potentially subsidizing the practice. Although many ethanol proponents denied it, I said at the time that we would know soon enough, because if ethanol exports fell once the tax credits expired at the end of 2011, that would be strong evidence that exports had indeed been benefiting from those tax credits.
Book Update I have mentioned it on here a couple of times, but I am under contract to deliver a book on energy by the end of this year. I initially had a pretty good idea of what I wanted to write, but that has evolved a bit as I started writing. So far, I have turned in three chapters to my editor, and I have several others partially complete. The book is going to be broken down into sections of general information (who uses what, who produces what, how it is produced, etc.), controversies (nuclear power, climate change, peak oil, etc.) and then one on possible energy solutions going forward. I am trying to cover stories from an objective… Continue»
Last November, the Financial Times published an article charging that ethanol from the U.S. is collecting U.S. tax credits before being shipped to Europe, where it also qualifies for favorable tax treatment. I wrote an article about this called Taxpayer Subsidized Ethanol Exports May Bite Industry in the Future. The gist of my article was that if this charge is true, it completely undermines the supposed reasons U.S. taxpayers are subsidizing ethanol in the first place — to reduce dependence on foreign oil. In fact, as I showed in a later article, any ethanol that is exported actually increases our dependence on foreign oil because it takes some oil to make the ethanol and then ship it to the export… Continue»
Near the end of my recent post documenting some of the antics of various ethanol interests, I wrote the following: “As always, I invite a response from ethanol interests or readers who wish to dispute my points. If someone wishes to engage on these points, the floor is open, and I am open to publishing any feedback.” Someone did respond, albeit not directly to me. A reader recently alerted me to the following article written by Brian Westenhaus at the New Energy and Fuel blog: A Look At The Ethanol Lies Let’s start with a lie, albeit most likely the lowest level of lie, everyone is lying about ethanol. It has gotten so that the lies are pervasive, even such… Continue»
Ulterior Motives Behind the Ethanol Pipeline? Ethanol producers in the Midwest have lobbied for support to build a pipeline to ship their ethanol to the East Coast. As I have argued, given that the market for ethanol is nowhere close to being saturated in the Midwest (a large E85 market in the Midwest could consume all of the ethanol produced there), it would seem to be a better allocation of resources to build up the E85 market rather than try to export ethanol from the Midwest. However, some have claimed that the real reason ethanol producers want the pipeline is so they can export ethanol out of the country. They argued that U.S. taxpayers would end up subsidizing ethanol exports… Continue»