Kathianne
08-08-2008, 07:47 AM
Doesn't matter about inflation here or food shortages in poor countries:
http://www.nytimes.com/2008/08/07/business/08ethanol.html?ei=5124&en=079db13d4623630b&ex=1375848000&adxnnl=1&partner=permalink&exprod=permalink&adxnnlx=1218199442-kcMEaCRDMflYkPccKVFGGA
August 7, 2008
E.P.A. Won’t Ease Ethanol Requirements in Gas
By MATTHEW L. WALD
WASHINGTON — The Environmental Protection Agency rejected on Thursday a request to cut the quota for the use of ethanol in cars, concluding, for the time being, that the goal of reducing the nation’s reliance on oil trumps any effect on food prices from making fuel from corn.
The E.P.A. administrator, Stephen L. Johnson, said that the mandate was “strengthening our nation’s energy security and supporting American farming communities,” and that it was not causing “severe harm to the economy or the environment.”
The effect of the decision on fuel and food markets is hard to determine. Recently, high energy prices have led to even more ethanol production than the quota required. On the other hand, rising corn prices made some ethanol operations unprofitable, especially as oil prices started to fall.
So ending the quota might not have reduced the use of ethanol, but it might decline even with the quotas remaining in place. Still, the debate is fraught with symbolism — as a sign of unease over government intervention in the energy and food markets, with all the unintended consequences that ensue. The decision is an indication that Washington is unwilling to retreat from a policy that is very popular among grain farmers, if not among ranchers....
http://www.nytimes.com/2008/08/07/business/08ethanol.html?ei=5124&en=079db13d4623630b&ex=1375848000&adxnnl=1&partner=permalink&exprod=permalink&adxnnlx=1218199442-kcMEaCRDMflYkPccKVFGGA
August 7, 2008
E.P.A. Won’t Ease Ethanol Requirements in Gas
By MATTHEW L. WALD
WASHINGTON — The Environmental Protection Agency rejected on Thursday a request to cut the quota for the use of ethanol in cars, concluding, for the time being, that the goal of reducing the nation’s reliance on oil trumps any effect on food prices from making fuel from corn.
The E.P.A. administrator, Stephen L. Johnson, said that the mandate was “strengthening our nation’s energy security and supporting American farming communities,” and that it was not causing “severe harm to the economy or the environment.”
The effect of the decision on fuel and food markets is hard to determine. Recently, high energy prices have led to even more ethanol production than the quota required. On the other hand, rising corn prices made some ethanol operations unprofitable, especially as oil prices started to fall.
So ending the quota might not have reduced the use of ethanol, but it might decline even with the quotas remaining in place. Still, the debate is fraught with symbolism — as a sign of unease over government intervention in the energy and food markets, with all the unintended consequences that ensue. The decision is an indication that Washington is unwilling to retreat from a policy that is very popular among grain farmers, if not among ranchers....