Essay on Biofuel Proposal

1411 Words 6 Pages
Biofuel Proposal

Executive Summary: The power and prosperity of The United States of America will be severely hindered if changes are not taken within the next few years to reduce its dependency on oil and improve its usage of biofuel. The process to become less dependent on foreign energy sources will be crucial for the stability and growth of the nation in the upcoming years. Re-examining subsidies and tariffs are essential if any positive change is to be made.

A Shift Away From Oil Is Crucial
The consequences of the United States’ reliance on oil have brought together the nation’s leaders in ways that few issues have in decades. The call for action to deliver advanced biofuels and efficient flex-fuel vehicles now comes from
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Biofuels emit less particulate pollution than traditional petroleum-based gasoline and diesel fuel, which means they contribute minimally to global warming. The only emissions from the use of biofuels come from the carbon dioxide of their source plants2. In order to save our economy and environment, the United States needs to encourage the development of biofuels.

Subsidizing Agricultural Biofuels Not the Way to Go
In 2006, the U.S. government paid out approximately $15 billion in agricultural subsidies. While this expenditure did fuel significant economic productivity within the agricultural industry, through expansion and benefits of economies of scale, it came at the expense of American tax payers that did not benefit from a decrease in agricultural retail prices. For instance, due to global awareness of the shrinking oil inventory, alternate energy sources are being sought. As a result, in 2006, demand for corn ethanol, currently an oil additive, saw corn prices reach a 10-year high. Regardless of the increased profit, corn ethanol subsidies totaled $7 billion. Production of ethanol costs 38 cents more than gasoline per gallon. To offset this disparity would require approximately $2 billion of subsidies to corn farmers, $5 billion less than what was awarded3. That year, taxpayers saw an average 0.6% increase in taxes, while still seeing a steady climb in prices at the pump. Subsidies alone

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