Saturday, February 6, 2016

Finally, America May Be Catching On to Ethanol Racket - by Nicolas Loris

A study by Iowa State University researchers concluded that incentivizing more biofuel production with government policies leads to more adverse environmental consequences caused by farming, the use of fertilizers, and land-use conversion for agricultural production, resulting in increased soil erosion, sedimentation, and nitrogen and phosphorus runoff into lakes and streams.
Though the mandate benefits a select few in the Midwest, the Renewable Fuel Standard spreads the cost to the rest of Americans, including many in the agricultural community. The biofuels mandate gives preferential treatment to the production of corn and soybeans at the expense of other agricultural products and artificially eliminates the risk and competition necessary to drive innovation and economic growth.
The problem with the Renewable Fuel Standard is not the use of biofuels themselves, but rather that it is a policy that mandates the production and consumption of the fuel.
Having politicians centrally plan energy decisions best left for the private sector distorts markets and demonstrates the high costs and unintended consequences of government control.
Congress should admit that the Renewable Fuel Standard is costly to the economy and the environment, benefiting a select group of special interests. Importantly, Congress should recognize that the federal government has no business determining what type of fuel we should use and how much of it we should consume each year.
The only viable solution to this broken policy is to repeal the biofuels mandate altogether.