Ethanol, Economics and Ethics; Growing Our Own Fuel

By: Lance Winslow
Submitted: 2007-01-17 16:23:56
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Breaking our addiction to foreign Middle Eastern oil will not be easy, but then again no one said it would be. United States government supports through initiatives the research and development of growing our own fuel in the United States of America. The United States government also subsidizes farmers and gives incentives to ethanol producers. Many states in the northern Midwest also support ethanol producers by reducing the tax on each gallon of gasoline or bio-diesel sold.

This is good news however it also could be considered corporate welfare. At some point these tax incentives and research and development dollars need to stop and ethanol producers need to become productive and profitable on their own. The efficiency is the hallmark to any business model.

We have other issues to consider as well and perhaps we should separate agricultural commodities on those types of crops, which will be used to grow our own fuel. Perhaps we should put all biofuels to gather in their own separate commodity regardless of the type of crop that is used to make into ethanol or bio-diesel. This way it would move up or down like in index fund, which could prevent price spikes.

We must slowly remove the government subsidies on biofuels completely by 2012. Any taxation strategies we use on biofuels must not bankrupt the government. The government has a thirst to spend taxpayers money and they need money to keep going. Currently there is a windfall in tax profits to governments due to the high gasoline taxes. We need an ethanol strategy, which makes sense for America and our economy; one, which is ethical and keeps ethanol producers and agricultural institutions efficient.

Additionally we need a moratorium on new regulations and limits of liabilities to companies and entrepreneurs involved in the growing, refining and production of ethanol, as well as those manufacturers who make flex fuel vehicles and components. Without these initiatives we cannot expect our biofuels initiatives to help us in removing our addiction to foreign oil. Please consider this in 2006.

Lance Winslow

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