US Public Has Zero Desire for Brazil’s Ethanol; Should It?
Of nearly 2,000 Americans responding to a survey by The Regional Economist magazine of the Federal Reserve Bank of St. Louis zero percent say they favor lifting import tariffs on ethanol. That opinion bodes badly for lifting the $0.54 a gallon tariff on Brazilian ethanol made from sugar cane. This view reflects America’s new dream of energy independence. But is it wise or even ethical for America to shut its doors to Brazil’s hottest new fuel?
Without Brazil, Can America Reduce Gas Consumption 20% Over Ten Years?
This ambitious “twenty-in-ten” gasoline reduction is the Bush administration’s goal. But without Brazil’s ethanol it may be an uphill battle. With US corn setting record prices this year, it’s no surprise ethanol made from US corn is $2.90 a gallon while ethanol from Brazilian sugar cane is less than half the price at $1.40 a gallon. Even after the tariff, Brazil’s ethanol would be almost a dollar a gallon cheaper than ethanol produced domestically from corn.
