I asked Dr. José Goldemberg, secretary for the environment for São Paulo State and a pioneer of Brazil’s ethanol industry, the obvious question: Is the fact that the U.S. has imposed a 54-cents-a-gallon tariff to prevent Americans from importing sugar ethanol from Brazil “just stupid or really stupid.”Obviously, I am not the first to think that the agriculture lobby is out of control. Whether it is battling global poverty or the evironment / foreign oil dependency, we would be much further along if we could find a way to ease our farmers off of government welfare.
Thanks to pressure from Midwest farmers and agribusinesses, who want to protect the U.S. corn ethanol industry from competition from Brazilian sugar ethanol, we have imposed a stiff tariff to keep it out. We do this even though Brazilian sugar ethanol provides eight times the energy of the fossil fuel used to make it, while American corn ethanol provides only 1.3 times the energy of the fossil fuel used to make it. We do this even though sugar ethanol reduces greenhouses gases more than corn ethanol. And we do this even though sugar cane ethanol can easily be grown in poor tropical countries in Africa or the Caribbean, and could actually help alleviate their poverty.
Yes, you read all this right. We tax imported sugar ethanol, which could finance our poor friends, but we don’t tax imported crude oil, which definitely finances our rich enemies. We’d rather power anti-Americans with our energy purchases than promote antipoverty.
At my old job, I used to goad people into arguments during lunch. That made me unpopular.
Thursday, September 21, 2006
More on the Ag lobby
I couldn't help but add to my previous post on US and European agriculture subsidies. It seems that the agriculture lobby will even sacrifice the environment as long as it gives them an advantage over better international products. From Thomas Friedman ($):
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