...DMACC THE ETHANOL ENVIORMENT A RESEARCH PAPER SUBBMITTED TO MR. JEFF WILLIAMS INTRODUCTION TO ETHICS PHI 105 BE BOONE, IA NOVEMBER 17, 2014 Abstract Ethanol is a renewable resource that is produced from many agricultural products. The public attitude towards corn based ethanol is influenced by many different subjects like, the effects of production on the environment, the effects on local economies, and the effects on the national food prices. Focusing on corn based ethanol there are considerations to take into effect such as the benefits of ethanol, the problems or concerns with ethanol, the political involvement with ethanol, and the effect of ethanol on the economy. The Ethanol Environment Ethanol is a renewable resource that is produced from many agricultural products such as corn, which can be blended into many different proportions of gasoline. The public attitude towards corn based ethanol is influenced by many different subjects. The overall plan for ethanol was good but took a wrong turn and has caused damage as a result. As stated by Michelle Heath, “there are no known environmental hazards that have to do with ethanol.” Ethanol does not only make our vehicles friendlier to the environmental it also has other impacts. Considering our total energy use, including building, heating and electricity, the savings from the use of biofuels is two-thirds greater than using gasoline (Dewsbury, 2009). With the increased...
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...consumption of food in rapidly developing nations China and India. Rising consumption in meat leads to more demand in corn to feed animals. However farmers have been producing corn and soy beans for other reasons, mainly to create bio-fuels out of them. And to make matters even worse, governments are seeing bio-fuel as a solution for the increasing global warming situation. They are making a solution for global warming and creating another problem food is getting more expensive. The reason behind this is because farmers get subsidies from the government thus leaving the production of their crops as food behind. This makes it more expensive for other farmers to feed animals that will later lead to food in the market. These are 2 big problems that are happening right now because we want to protect the environment but we all know that we do not want to go hungry doing it. What is unfortunate in this situation is that high tariffs are shutting out producers of alternative products that can be turned into bio-fuels, most notable sugar cane, from the U.S. and EU. One of the most notably sugar cane producers (Brazil) confronts import tariffs of about 25% in the U.S. and 50% in the EU. These import tariffs raise the price of sugar and makes it uncompetitive with corn and soy beans thus breaking the chance of converting sugar into bio-fuels and ethanol. It is an unfortunate situation because sugar is seen as a more environmental friendly raw material for bio-fuels seeing that the fiber removed...
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...Ethanol: Is It Really the Best Option Ethanol based gasoline vehicles are becoming more and more popular, but is ethanol gasoline better than regular petroleum gasoline? Ethanol, also known as ethyl alcohol, can be an effective motor fuel, and most of the gasoline in the US contains some ethanol (Ethanol As a Transportation Fuel). Many people everywhere are praising ethanol gasoline because it can reduce pollution, and increase engine performance. There are some facts that are not being recognized, and these facts should be brought to light. The price of corn and food products made from corn will increase from the higher demand of corn and vehicles have to use one-third more ethanol than regular gas. Ethanol gas in the end will end up costing more than petroleum gas being used now. Ethanol gas as an alternative to gas will mean that the demand for corn will become greater and greater. The use of ethanol in motor fuel has increased for years an average of twenty-five percent per year (Ethanol Cost And Environmental Factors). This year America will use 5 billion bushels of corn which will produce about 14 billion gallons of ethanol (Helman). So will farmers be able to grow the amount of corn needed for the production of ethanol gasoline and food demand? The increase in corn crops in the Midwest has added to size of the dead zone in the Gulf Coast (Miller). What if the country was to experience another serious drought, or major flood? A different method of creating ethanol would...
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...Last decade, an alternative energy - ethanol is started to be produced in order to be an alternative to oil consumption. Since fuel ethanol industry is based largely on corn, what would be the effect of ethanol production on food prices? In previous decades, corn has been sold cheaply. Now that the ethanol industry is beginning to arise, farmers are able to make more profit as corn prices are increasing. There is a distinction between the use of corn for food and it's use for fuel. Ethanol is made from field corn. A majority of field corn is used for ethanol production. Sweet corn is widely known to serve frozen, fresh, or canned as a vegetable for eating. The corn we are using to make biofuels is not the corn that people eat. In recent years, it has been studied that the impact that biofuels/ethanol has on food prices is very minimal compared to food prices globally. It has been assumed by researchers that ethanol is not the cause for food prices to rise. From my understanding I believe that food prices are increasing from the influence of the ethanol industry, but not from that industry alone. It depends on a number of factors which influence the change in supply and demand. Prices will increase if farmers do not produce the right amount of corn for the quantity demanded. Therefore it will have an effect on the supply shortfall. The weather can affect prices as well. For example, there was a drought in the United States last year which had decreased corn production. This...
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...Introduction to International Business Global Food Prices 1. Who benefits from government policies to (a) promote production of ethanol and (b) place tariff barriers on imports of sugarcane? Who suffers from these policies? If CO2 emissions are actually bad for the environment, everyone benefits from the government promoting the production of ethanol. Of course, this is controversial and a highly debated subject. The companies and farmers that work together to produce ethanol also benefit from the government promoting production of ethanol. Everyone in the industry makes more money because of the demand for ethanol. The people that suffer from these policies are consumers. Prices of corn, soybean, and sugarcane have increased. This has an impact on grocery bills. The increase in the price of corn also increases the price of beef. Farmers have to buy corn at an increased price to feed their animals and the cost is passed to the meat buyer (Bullock). 2. One estimate suggests that if food prices rise by one-third, they will reduce living standards in rich countries by about 3 percent, but in very poor ones by about 20 percent. According to the International Food Policy Research Institute, unless there is a change in policies cereal prices will rise by 10 to 20 percent in 2015, and the expansion of biofuel production could reduce calorie intake by 2 to 8 percent by 2020 in many of the world's poorest nations. Should rich countries do anything about this...
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...Chapter 9 Ethanol Policy and Ethanol Politics David S. Bullock28 The United States is currently passing through one of the most exciting and controversial periods of its energy history. With the US military caught up in armed conflict in the Middle East, and with global warming looming in the minds of many expert scientists as the world’s greatest environmental challenge, a common belief is that it is more important than ever that the US develop sensible and far-sighted energy policy. Politicians’ claims aside, the politics of energy policy are rarely about what is best “for the country.” When government sets energy policy, some people gain, and others may lose. The politics of energy policy, then, are not simply, or even generally, about how to make the nation as a whole better off. Rather, the politics of energy policy are very much about interested political groups struggling against one another. This type of “special interest” politics is nothing new, and not unique to energy policy. Nevertheless, it is widely held among average Americans that the political activities of special interest politics are often bad for the nation as a whole. Because public information is a democracy’s best weapon against harmful special-interest politics, in this chapter we hope to accomplish three goals: 1) to present an outline of the “nuts and bolts” of U.S. ethanol policy; 2) to use economic analysis to examine the effects of ethanol policy, presenting arguments to cut through much of the...
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...combustible geologic deposits of organic materials formed from decayed plants and animals that have been converted to crude oil, coal, natural gas, or heavy oils by exposure to heat and pressure in the earth’s crust over hundreds of millions of years. The burning of these fossil fuels is the largest source of emissions of carbon dioxide which is one of the greenhouse gases that contribute to global warming. Biofuels are transportation fuels like ethanol and biodiesel that are made from biomass materials. The fuels are usually blended with petroleum fuels, but can also be used alone. Using ethanol or biodiesel means we don’t burn quite as much fossil fuel. Biofuels are usually more expensive, but they are cleaner burning fuels that produce few air pollutants. Ethanol is an alcohol fuel made from sugars found in grains such as corn, sorghum or barley. Other sources are potato skins, rice, sugar cane, sugar beets, yards clippings, bark and switch-grass. Most ethanol uses in the United States is distilled from corn. Ethanol is a major type...
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...The Brazilian Ethanol Story IB 403, Section 003 Introduction: Biofuel is one of the newest and largest trends sweeping the world. Gaining interest in countries and economies, governments have announced strong commitments to biofuel programs in order to reduce greenhouse gas emissions and diversify energy sources. Although these programs are new to many countries, Brazil has years of experience with sugarcane-based ethanol, creating a success story for others to reference. Currently, Brazil is the largest biofuel market with the United States ringing in a close second. However, Brazil’s ethanol is created from sugarcane while the U.S. uses corn to produce their ethanol. Not only is Brazil’s sugarcane-based ethanol the first renewable fuel to be cost-competitive with transportation fuel, but it is also the most economical compared to its competitors. The ethanol’s efficiency is due to the power of the sugarcane compared to corn as an ethanol feedstock, a perfect climate for sugarcane harvesting, and the large, unskilled, inexpensive labor force in Brazil. In addition, the U.S. uses almost double the amount of land to farm corn to produce ethanol as Brazil uses to harvest sugarcane to produce almost the same volume as ethanol. What is Ethanol? Ethanol is an alcohol fuel distilled from plant materials, such as corn and sugar. Ethanol is the main biofuel for transportation and Brazil is the greatest exporter globally of bioethanol. The sugar and ethanol industry in Brazil...
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...The Brazilian Ethanol Story IB 403, Section 003 Introduction: Biofuel is one of the newest and largest trends sweeping the world. Gaining interest in countries and economies, governments have announced strong commitments to biofuel programs in order to reduce greenhouse gas emissions and diversify energy sources. Although these programs are new to many countries, Brazil has years of experience with sugarcane-based ethanol, creating a success story for others to reference. Currently, Brazil is the largest biofuel market with the United States ringing in a close second. However, Brazil’s ethanol is created from sugarcane while the U.S. uses corn to produce their ethanol. Not only is Brazil’s sugarcane-based ethanol the first renewable fuel to be cost-competitive with transportation fuel, but it is also the most economical compared to its competitors. The ethanol’s efficiency is due to the power of the sugarcane compared to corn as an ethanol feedstock, a perfect climate for sugarcane harvesting, and the large, unskilled, inexpensive labor force in Brazil. In addition, the U.S. uses almost double the amount of land to farm corn to produce ethanol as Brazil uses to harvest sugarcane to produce almost the same volume as ethanol. What is Ethanol? Ethanol is an alcohol fuel distilled from plant materials, such as corn and sugar. Ethanol is the main biofuel for transportation and Brazil is the greatest exporter globally of bioethanol. The sugar and ethanol industry in Brazil...
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...Case study of the Economic Problem The basic economic problem Economists distinguish between wants and needs; needs are those things which people require to survive. These comprise food, water and protection from the elements in the form of shelter and clothing. Nestlé products fall into two of these categories (food and water). However they can only be described as wants because it is possible to survive without consuming any Nestlé products at all. All resources are considered scarce because the wants for them (the demand) outstrip the various uses for them (the supply). This means that they have to be shared out (distributed) by a mechanism such as price. There are numerous ways in which a resource may be used, an opportunity cost is therefore created whenever one use is preferred over another. If water is used for industrial production, it is not available for agriculture or domestic consumption. Water is a classic example of the distribution problem of scarce resources. There is actually enough water in the world for everyone's needs, and it is not a resource that is ever 'used up' in the way that other resources can be consumed. The amount of water in the earth's water cycle - evaporating from the sea, then falling as precipitation over land - is constant, the problem is one of distribution - it is not always located where it is needed. Read more: http://businesscasestudies.co.uk/nestle/sustainability-and-water/the-basic-economic-problem.html#ixzz1oPYHca55 Case...
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...Should Ethanol Be Used as an Additive to Motor Fuels Since living in Texas my whole life oil has always been a huge part of my life since oil is everywhere in Texas. I have been aware of corn ethanol production in the United States for a long time. The reason for my awareness is a lot of my family has been apart in the oil industry for a long time. Then I notice every time I go to the gas station that it states “the gas may contain up to 10% ethanol”. These things that have affected my life are the reason I analyzed in greater detail what this article has to say about ethanol. I read one article towards the use of ethanol and one against it. My journey started with the first article that was assigned to the class: “Energy Balance of Ethanol Even More Favorable Than Estimates” from Usagnet by Alan Tiemann, the Nebraska Corn Board Director. In this article Tiemann talks in great detail about the energy balance of corn production to ethanol conversion is a better measurement and more profitable for both the oil and farming industries. He also states that multiple studies have proven that the conversion measurement is better. The study at the University of Nebraska really stuck out. Ken Cassmann, director of the Nebraska Center for Energy Sciences Research. Cassmann researched and believes that the past researches were based on “backward looking data” and not that true. Whereas, new research conducted at University of Nebraska shows the conversion to ethanol are 200%-...
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...Md. Arafater Rahman Bhuiyan Assistant Professor Department of business studies Bangladesh University of Business & Technology Subject: Letter of Transmittal Dear Sir, With due respect we, the undersigned students of BBA 28 intake, section 07 of a group have Case study on “Why did global food price rise” under the course: International Business. This case study has enabled us to gain how to increase global food price rise. So it becomes as an extremely challenging and interesting experience. Thank you for your supportive consideration for formulating an idea. Without your Inspiring this case study would have been an incomplete one. Lastly, I would be thankful once again if you please give your judicious advice on effort. Yours’ sincerely, On behalf of my group Md. Mahmud Hasan ID No- 11123101283 Department of Business Studies Acknowledgement Every case study big or small whatever, is successful largely due to dedicated people who have always given their valuable advice. I sincerely appreciate the support and guidance of all those people who help us to complete this case study. I am Md. Mahmud Hasan. Extreamly grateful on behalf of my group to my course teacher Md. Arafater Rahman Bhuiyan who gave a case study task to complete with good direction. And also, grateful unknown economic online blogger who wrote articles on his blog & we got some important information. I also grateful to my group...
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...Chapter 1 Analyzing Economic Problems Solutions to Review Questions 1. What is the difference between microeconomics and macroeconomics? Microeconomics studies the economic behavior of individual economic decision makers, such as a consumer, a worker, a firm, or a manager. Macroeconomics studies how an entire national economy performs, examining such topics as the aggregate levels of income and employment, the levels of interest rates and prices, the rate of inflation, and the nature of business cycles. 2. Why is economics often described as the science of constrained choice? While our wants for goods and services are unlimited, the resources necessary to produce those goods and services, such as labor, managerial talent, capital, and raw materials, are “scarce” because their supply is limited. This scarcity implies that we are constrained in the choices we can make about which goods and services to produce. Thus, economics is often described as the science of constrained choice. 3. How does the tool of constrained optimization help decision makers make choices? What roles do the objective function and constraints play in a model of constrained optimization? Constrained optimization allows the decision maker to select the best (optimal) alternative while accounting for any possible limitations or restrictions on the choices. The objective function represents the relationship to be maximized or minimized. For example, a firm’s profit might be the objective...
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...Biofuels Damage the Environment: Nitrous Oxide Trumps e cientists working on behalf of the International Council for Science (ICSU), a Paris-based federation of scientific associations from around the world, have issued a new report that says biofuels do more to create global warming than burning fossil fuels. The reason is that raising the plants to be turned into ethanol and biodiesel releases large volumes of nitrous oxide (N2O), which is 300 times more potent than carbon dioxide (CO2) as a greenhouse gas. Once again, trying to solve humanity's longterm energy and climate problems by hastily grasping at so called green solutions has resulted in the opposite of what eco-activists have claimed. Biofuels have been promoted as a way of reducing the amount of CO2 being pumped into the atmosphere by burning fossil fuels. Plants such as sugar cane, corn (maize), wheat and oilseed rape absorb carbon dioxide as they grow. In theory, burning fuels made from them should have no net effect on the amount of CO2 in the atmosphere and, therefore, should not contribute to global warming. In Europe, efforts have concentrated on the use of rape seed oil for biodiesel while America has focused its efforts on corn in the short term with a vague promise of a shift to non-food cellulose (wood) sources sometime in the future. The ICSU report concludes that the production of biofuels has increased rather than reduced global warming. In particular, it supports the controversial findings published...
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...Private companies have investors and more importantly, a supply in demand. Unfortunately, these are the effects of a capitalist society where the rich keep getting richer and the poor keep getting poorer. A popular argument for the failure of underdeveloped countries is that they are not taking advantage of the free market when in reality, the free market is taking control of underdeveloped countries. Biofuel is a large contributor to the global food crisis for multiple reasons. Biofuel is essentially ethanol that is produced by the fermentation and distillation of corn. Typically, fuel for motor vehicles is 90% gasoline and 10% ethanol. While ethanol is better for the environment for its purification of gasoline and reduced greenhouse gas emissions, it also heavily raises the prices of corn, a staple crop, in many developing countries. For example, Nebraska, the largest producer of corn in America, began to develop ethanol plants all over the country and used so much corn that the state of Nebraska had to import corn in order to meet the demand. The simple solution to this is to grow more corn to meet the needs of the ethanol industry and public necessity; however, it is not that...
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