Wednesday, December 01, 2010
Will Congress Let Ethanol Subsidies Expire At End of Year?
Some in Congress now believe that subsidies and tariffs to promote domestic ethanol production should be ended because they are “fiscally irresponsible and environmentally unwise.” They believe that eliminating or reducing ethanol subsidies and trade barriers are important steps to reduce the budget deficit, improve the environment, and lessen our reliance on imported oil
High tariffs on imported ethanol, meanwhile, artificially drive up the price of domestic ethanol, angering fiscal conservatives. Environmental, food and livestock industry groups have made their own calls to end ethanol subsidies, arguing that the policies have led to a rise in the price of feed and basic food commodities and ethanol is a required fuel additive anyway [see EPA Finalized 2011 Renewable Fuel Standard]. (NYT, 12/1/2010)