Another one bites the dust
Posted by jab12004 on April 10, 2009
Aventine, a corn ethanol producer, has joined the recent wave of ethanol refiners to file for chapter 11 bankruptcy. This is a disturbing trend considering the subsidy ($.45/gallon) and tariff protection ($.54/gallon and 2.5% ad valorem tax) that corn ethanol already receives.
However, not to worry, there is still the renewable fuels standard to mandate unreasonably high levels of ethanol and save the industry.
[Aventine Chief Executive] Miller said the industry has sound long-term prospects and Aventine anticipates a strong rebound as mandates increase.
Sounds like pretty standard buisness practice for the corn ethanol industry, wait for the government to protect us a bit more and buisness will boom!
This news comes in the wake of a CBO study which says that the RFS will probably increase GHG emissions in the long run due to indirect land change effects. John at Environmental Economics already has it covered.
My question is that can we all come together as a nation, admit we were wrong, and then stop using corn ethanol?