Posted by VADAVE on March 06, 2011 at 03:38:52 from (68.98.132.217):
In Reply to: End of ethanol.... posted by muckfarmer on March 06, 2011 at 02:47:08:
Sorry Muckfarmer I agree and disagree. What's driving Corn prices? Demand and input costs! So if the subsidy is cut demand drops driving down prices BUT input costs do not drop. Corn production drops untill supply just equals demand and prices come back up. It won't be quite that easy and simplistic. The other thing driving enthanol is environmental and vehicle performance. Over time we have learned that the additives the oil industry comes up with has side effects that are not desirable while enthanol really doesn't effect the environment so much. Also we are learning how to build engines that work with alcohol effectively. One more thing the greed of the oil industry with their unrealistic price jumps are getting the economy/people to accept high fuel costs so that when the oil industry portion of the cost of fuel is controlled the delta will replace the subsidy.
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