2NC Extension Harms – Economy #2 “Ethanol Isn’t Enough” 154
1) Sugarcane ethanol will not produce enough fuel to change global gas consumption, which means it will have no impact on oil price fluctuations. Extend our SPECHT evidence.
2) Cuba’s sugar industry collapsed, and the country does not have the infrastructure to produce ethanol.
ELLEDGE, 9
[Nicholas, writes for the Council on Hemispheric Affairs; “Cuba's Sweet Success May Come from an Ethanol Future” 11/02, http://www.thecuttingedgenews.com/index.php?article=11745]
Cuba’s sugar industry has suffered from long-term neglect and insufficient investment, and its productive role has been utilized more as a vehicle for short term profit than as an engine for long term economic growth. From 1959 to 1999, only six new sugarcane mills with the capacity to cogenerate electricity were built despite guaranteed financial backing from the Soviet Union for part of that time. Also at Havana’s disposal were several advanced sugarcane research institutions, such as the Institute for Sugar Investigation (ICINAZ) and the Cuban Research Institute of Sugarcane Derivates (ICIDCA). Gradual decapitalization, disrepair, and low morale, all a result of a largely insufficient investment and a lack of spare parts, brought about the infrastructural deterioration that led Castro to close the majority of the nation’s mills in 2002.
2NC Extension Harms – Economy #3 “No Market” 155
1) Extend our IPS evidence. There is no global market for Cuban ethanol, which means there will not be enough demand to sustain the industry over the long-term. Without demand, no one will invest and ethanol will die.
2) No country is willing to guarantee a market for biofuels.
IPS, 13
[Inter Press Service; “Brazilian Ethanol in the Slow Lane to Global Market Brazilian Ethanol in the Slow Lane to Global Market,” 2/17, http://globalgeopolitics.net/wordpress/2013/02/17/brazilian-ethanol-in-the-slow-lane-to-global-market/]
But that demand is not a sure thing. The EU’s executive body, the European Commission, is considering revising its transport fuel target to impose a limit on crop-based biofuels in an effort to prevent negative impacts on food supply, while in the United States the powerful oil and corn lobbies are pressuring against the RFS, the UNICA director said. Out to conquer emerging markets Another huge potential market is China, but only if it adopts an ambitious programme once "a supply of diverse and permanent sources is guaranteed," de Sousa forecasted. Many countries introduced the use of ethanol as a fuel additive in the 1990s. But there are numerous cases in which national programmes for the adoption of this biofuel were postponed or implemented on a trial basis. For example, after establishing a voluntary three percent biofuel blend in 2003, Japan is still reluctant to make it mandatory.
2NC Extension Harms – Economy #4 “Economy is Resilient” 156
1) The U.S. economy can recover from short-term shocks like oil prices because it is diverse and has structural supports. Small dips do not create massive downturns. Extend our BLOOMBERG BUSINESSWEEK evidence.
2) The U.S. can withstand shocks because it is built differently than other countries.
REUTERS, 11
[Leah Schnurr and Andy Bruce; “U.S. resilient, Europe debt woes touch Asia,” 12/15, http://www.reuters.com/article/2011/12/15/us-global-economy-wrapup-idUSTRE7BE0X120111215]
An improvement in the U.S. employment picture last week and a rise in regional factory activity suggested an emerging divide between resiliency in the U.S. economy and faltering growth in Europe and Asia. The better-than-expected U.S. data boosted optimism the economy has momentum heading into the new year and was further evidence it is, so far, weathering the festering sovereign debt crisis in Europe, which is starting to crimp growth in emerging trade partners like China. As well, two factory activity surveys for the U.S. Northeast showed growth accelerated as new orders improved, and manufacturers were more optimistic about the months ahead. That leaves the United States as perhaps the only major Western power currently making a significant contribution to global economic growth. "It seems the U.S. economy is continuing to improve and is finishing the year on a very strong note," said Alex Hoder, economic analyst at FTN Financial in New York. The U.S. data helped boost Wall Street stocks in early trading. The New York Federal Reserve's "Empire State" general business conditions index rose to a seven-month high at 9.53 from 0.61 the previous month. The Philadelphia Federal Reserve Bank said its business activity index jumped to 10.3 from 3.6 the previous month, rising to its highest level since April. The survey covers factories in eastern Pennsylvania, southern New Jersey and Delaware, while the Empire State data covers New York state.
1NC Frontline – Solvency 157
1) Even if the U.S. fully supports Cuban ethanol, there is no domestic political support or prospective internal economic demand to restart the industry.
SPECHT, 12
[Jonathan, Legal Advisor for Pearlmaker Holsteins, Inc. B; J.D., Washington University in St. Louis; “Raising Cane: Cuban Sugarcane Ethanol’s Economic and Environmental Effects on the United States,” 4/24, http://environs.law.ucdavis.edu/issues/36/2/specht.pdf]
The ideal domestic policy scenario for the creation of a robust Cuban sugarcane ethanol industry would be a situation in which: the U.S. trade embargo on Cuba is ended; U.S. tariff barriers are removed (in the case of sugar) or not revived (in the case of ethanol); and the RFS requiring that a certain percentage of U.S. fuel come from ethanol remain in place. Of course, changes in United States policy alone, even those that ensure a steady source of demand for Cuban sugarcane-based ethanol, would not be enough to create an ethanol industry from scratch. Cuba will need to foster the industry as a key goal of the post-Castro era and shape its domestic policies to encourage the growth of the industry. Given that the Cuban sugar industry lived and died by its ties with the Soviet Union for several decades of the Twentieth Century, 50 Cuba will likely be quite wary of investing too much in the creation of a sugarcane ethanol industry that it perceives as being largely a creature of U.S. energy and agricultural policy. Therefore, the creation of a significant sugarcane ethanol industry in Cuba will require a large increase in domestic demand for ethanol. One way that Cuba could encourage domestic demand for ethanol would be to follow the Brazilian model of encouraging the purchase of Flex Fuel vehicles, which can run on any blend of fuel between 100% gasoline and 100% ethanol. 51 Given the relative poverty of Cuba’s population, as indicated by the number of vehicles in the country that are several decades old, 52 expecting new vehicles to provide a source of demand for ethanol may be an extremely unrealistic prospect. On the other hand, potential pent-up demand for new automobiles, alongside sufficient and well-directed government incentives, could accelerate demand for Flex Fuel vehicles relative to other countries.
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