Not everybody has bought into the “ethanol as a clean alternative to petroleum” bullshit: China’s petroleum producers are asking the Chinese government to stop subsidizing the corn-to-ethanol project (similar to the US government’s subsidy program).
[. . .] to enjoy the subsidy of 1880 Yuan per ton of alcoholic gasoline for vehicles and the tax-exemption policy for the corn-to-ethanol project, some plants in China began a wave of buying corn, causing the severe shortage of corn for animal feed and the rapid increase of corn prices.
“In the first half year of this year, China imported 78 million tons of corn, mainly due to the higher domestic corn price than overseas. In July, the average corn price in northeast China was 1845 Yuan per ton, rising by 15.7% year on year” said Zhang Jianbo, a market analyst with Distribution Productivity Promotion Center of China Commerce…
Of course the US has also been criticized for this insane subsidy of corn ethanol as well and blamed for dramatic price increases in corn based products in Mexico, and South/Central America.
The bottom line is corn ethanol makes no economic sense, never did, and when the total environmental impact end-to-end from dirt farm to tailpipe is considered, its even worse than ordinary gasoline. Its always been a lose/lose proposition all the way around, and many of the environmental groups have started to cool on their enthusiasm for it as the real cost/impacts manifested themselves.
Even if you’re not a whole-hearted “green”, this kind of market-rigging by government intervention should be greeted with derision: it’s not “green” to consume more resources to produce a less energy-intensive end-product and pretend it’s a viable substitute. This is another case where the government would produce better environmental results by burning the dollar bills rather than using them to subsidize corn production for ethanol.
