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The U.S. corn ethanol industry is a subsidized, high cost,trade protected, limited scale industry; unable to compete infree markets orto efficiently supply new fuel demands of cleanair legislation. Lower cost, sugarcane ethanol from LatinAmerica (Brazil) should be asupplementary source, especiallyfor U.S. coastal markets. Counter trade-corn for ethanolwouldbe more beneficial to U.S. corn producers than domesticethanol corn markets and would result in more efficient landuse, less soil erosion, and less fossil fuel use. A variableproducer subsidy should replace the current market subsidiesand import tax policies, giving limited protection to the domesticethanol industry while assuring adequate low-cost ethanolsupplies through competitive imports.

Subject(s): Agricultural and Food Policy

Issue Date: 1993

Publication Type: Journal Article

PURL Identifier: Published in: Choices, Volume 08, Issue 1

Total Pages: 4

Record appears in: Agricultural and Applied Economics Association (AAEA) > Choices

Autor: Rask, Norman ; Rask, Kevin ; Tiefenthaler, Jill


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