Submitted by joanie on 04/29/2011 10:09 PM Flag This Paper
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Case Two
Corn based ethanol and sugar based ethanol.
How these two types of ethanol affect America's reliance to them.
There are so many ways that one can start a paper off using the information given in the case study. So I did some further research on the topic of sugar based ethanol versus corn based ethanol. It's amazing how these two products can be converted to resourceful products besides food consumption. It's also interesting to see how the reliance on these two products have an adverse effect on food prices.
Presently, American farmers are being told by the government to use half of their land to grow corn. This corn being grown will be used in the production of ethanol. Ethanol is an alternative to gasoline. Ethanol is widely used in Brazil and in the United States, and together both countries were responsible for 86 percent of the world's ethanol fuel production in 2009. To qualify as a renewable fuel in the U.S., it must emit 20 percent less in the way of greenhouse gases than gasoline throughout its entire lifecycle. Corn ethanol produced in a natural gas facility (barely) meets the 20 percent renewable fuel standard. Sugarcane qualifies as an advanced biofuel because its emissions are 50 percent lower than gas or diesel. And sugarcane is cheaper.
But what does this have to do with the high tariffs placed on sugar.
The U.S. has such a high tariff for sugar because the U.S. wants to keep corn as the primary provider for ethanol in the U.S. If the U.S. was to lower tariffs on sugar, sugar would take the place of corn ethanol, which is American based. By placing tariffs on sugar the U.S. limits the amount of sugar that enters the country, which limits the amount of ethanol produced from sugar. The U.S. get this done by having farmers produce corn by enticing them with monetary incentives.
Not only does the tariff on sugar effect the production of corn but because it effects corn production, it leads to the rising...