 | Nigeria – The Significance of the Bonga Offshore Oil Platform Attack | The Oil Drum | A State of Emergency |  |
272 comments on DrumBeat: June 25, 2008
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272 comments on DrumBeat: June 25, 2008
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but there is no other way to maximize the utility of available resources
YES THERE IS !!
Repeal the 50 cents/gallon corn ethanol subsidy, and lower the tariff on imported ethanol.
Alan
Better yet, eliminate ethanol entirely. Ethanol amounts to pandering and handouts to farmers, with no real advantage. Invest in nuclear and wind to build support for an upcoming electric vehicle fleet. It amazes me that such stupid technologies are allowed to continue. If we were using sugar cane instead of corn and willing to sacrifice a lot of protected lands that would have the right climate, then ethanol might make more sense. Corn ethanol is insane.
And this will help our current accounts problem, how?
Sorry, I'm entirely ignorant of the politics behind this. Whats the problem?
The current account is the difference between exports and imports. Atm America imports more than it exports hence the current account is in deficit. Importing more ethanol will increase the deficit.
This argument is pretty useless in regards to ethanol though, given the large comparative advantages enjoyed by some producers compared to inefficient American corn ethanol.
I know what current accounts are, I just never had anyone explain to me why its a problem.
If we import (rather than locally produce) Ethanol, presumably it displaces imported oil, or oil products. Assuming we only import ethanol which is actually cheaper than the oil it replaces that would be a net reduction of imports. But, probably more importantly we would have more farm produce to export. It sounds to be like either win-win or maybe draw-win.