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Following the US ethanol rabbit?


October 29, 2011
By Scott Jamieson


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Oct 29, 2011 - A detailed opinion piece in the Weekly Standard tries to follow the US ethanol rabbit down the hole. Hang on - It is a wild ride.

According to agricultural commodity market analyst Dave Juday, subsidies and regulations have created a convoluted, inefficient, and counter-productive ethanol supply and demand network in the US that has more to do with politics than energy need.

Ironies include corn ethanol subsidized by US public money heading off to Europe or down to Brazil to meet needs in those regions, while the US imports ethanol from Canada and Brazil. According to Juday, the policies have played havoc with everything from food prices and beef production to engine wear and tear.


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