What is the Controversy Around Ethanol Subsidies?
The touting of ethanol by many governments, most notably the United States, has led to a great deal of controversy. In the United States, where billions of dollars of taxpayer money are spent on ethanol subsidies, the controversy has become particularly acrimonious, and there are a number of reasons behind it. Many boil down to a fundamental quarrel over whether or not ethanol, particularly corn ethanol, is really as miraculous as people claim it is. Some economists argue that when a product has inherent merit, people will pay for it, rendering subsidies unnecessary. Subsidizing ethanol production costs taxpayers money, albeit indirectly, and it keeps prices artificially low, rather than allowing them to be set in accordance with fair market value. Economists who want to see a more general promotion of sustainable energy also argue that ethanol subsidies take funding away from other sources of sustainable energy, including sources which are cleaner, more efficient, and easier to obtain
