What are the disadvantages of ethanol?
Higher Food Prices • According to the Congressional Research Service, the price of corn futures increased from $2.50 per bushel in September 2006 to a high of over $4.16 per bushel in January 2007, driven primarily by increased demand for corn as an ethanol feedstock. • The increased price of corn will have an impact across American agriculture, incentivizing the growth of corn at the expense of other crops, and driving up the cost of animal feed. • One estimate projects that the combined impact of increased ethanol production and higher transportation costs may cause milk prices to increase by 40 cents a gallon and cheese by 60 cents a pound. Limited Energy Savings and Environmental Benefits • Because corn is an energy intensive crop, increased demand may also increase fuel costs and deplete existing reserves, particularly of natural gas. • Scholars at the Cato Institute explain that ethanol may have an adverse impact on the environment because “profitable corn production requires tre
