Ethanol Economics

I don't think it is a necessary good idea that we use food like corn as a fuel source. When you use corn (moonshine, er I mean ethanol) as a fuel source that will raise the price of corn. Grain farmers who usually do crop rotation will now do less crop rotation and plant more corn especially when the demand for it rises. Take for instance, the island of Jamaica. Partly because of ethanol the price of chickens in Jamaica is going to increase. Why? Because chickens eat corn. When corn prices go up because of ethanol demand then eventually chicken prices will go up because chicken farmers will shift the cost of the corn to the consumer. Any product that uses corn will see an increase in price. That is hardly ever discussed in the ethanol debate. Another point about crop rotation to think about. If a farmer does less crop rotation and plants more corn instead of wheat or barley then there might be a shortage in those crops that he decides not to plant.

I think it is better if we are going to use ethanol as a fuel source we use a non-food source. For instance, trash. Researchers are developing a new system for converting trash into ethanol and methanol could help reduce the amount of waste piling up in landfills. Or how about switchgrass and wood chips? A company called Abengoa Bioenergy in Chesterfield, Missouri has developed a process that converts switchgrass into ethanol and methanol.

Interestingly enough some guy has a make-it-yourself ethanol web site. He even shows a diagram of his still. He mentions if you do this you have to get permission from the ATF though.

One final thought on this issue. I believe that government should not endorse any specific alternative fuel source. There might be a better fuel source better than ethanol in the future that we don't know of. Let the free market decide what the best fuel source would be.