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Fuel Or Folly? Ethanol And The Law Of Unintended Consequences
By Mr Ethanol | April 2, 2008
San Francisco Chronicle:
In the pantheon of well-intentioned governmental policies gone awry, massive ethanol biofuel production may go down as one of the biggest blunders in history. An unholy alliance of environmentalists, agribusiness, biofuel corporations and politicians has been touting ethanol as the cure to all our environmental ills, when in fact it may be doing more harm than good. An array of unintended consequences is wreaking havoc on the economy, food production and, perhaps most ironically, the environment.
Biofuels are fuels distilled from plant matter. Ethanol is corn-based, but other common biofuel sources include soybeans, sugar cane and palm oil, an edible vegetable oil. In the search for alternatives to fossil fuels, many countries have turned to biofuels, which has led to a booming business for those involved. In the United States, ethanol is the primary focus and, as a result, corn growers and ethanol producers are subsidized heavily by the government.
But it turns out that the use of food for fuel is wrought with difficulties. Corn, or some derivative thereof, is a common ingredient in a variety of packaged food products. So it’s only natural that, as it becomes a rarer commodity due to the conflicting demands of biofuel production, the prices of those products will go up. The prices of food products containing barley and wheat are also on the rise as farmers switch to growing subsidized corn crops. During a time of economic instability, the last thing Americans need is higher prices at the grocery store, but that’s exactly what they’re getting.
At the same time, corn is the main ingredient in livestock feed and its dearth is causing prices of those products to rise as well. Farmers have had to scramble to find alternative sources of feed for their livestock and, in some cases, have had to sell off animals they can no longer afford to feed . This, in turn, has led to an increase in the price of meat and dairy products for consumers. Read full article.
Topics: Biofuel, Ethanol Prices, Law, News |
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