22 November 2010

U.S. corn ethanol was not a good policy

According to Reuters:
Former U.S. vice-president Al Gore said support for corn-based ethanol in the United States was 'not a good policy', weeks before tax credits are up for renewal.

U.S. blending tax breaks for ethanol make it profitable for refiners to use the fuel even when it is more expensive than gasoline. The credits are up for renewal on Dec. 31.

Total U.S. ethanol subsidies reached $7.7 billion last year according to the International Energy Industry, which said biofuels worldwide received more subsidies than any other form of renewable energy.

'It is not a good policy to have these massive subsidies for (U.S.) first generation ethanol,' said Gore, speaking at a green energy business conference in Athens sponsored by Marfin Popular Bank.

'First generation ethanol I think was a mistake. The energy conversion ratios are at best very small.

'It's hard once such a programme is put in place to deal with the lobbies that keep it going.'
Why this change of heart?
"One of the reasons I made that mistake is that I paid particular attention to the farmers in my home state of Tennessee, and I had a certain fondness for the farmers in the state of Iowa because I was about to run for president."
Wow. I must admit, this is unusual honesty from any politician, even Al Gore.  Everyone presumes politicians make decisions based upon political calculations, but to hear this from Mr. Nobel-Gore is astounding.

Post a Comment