Friday, April 25, 2008

Starving people to feed cars

The use of grain to produce ethanol, and especially the subsidies and mandates that have increased its use, are having a disastrous effect on the poor and hungry around the world. Good intentions are not enough. From the New York Sun [emphases added]:
With prices for rice, wheat, and corn soaring, food-related unrest has broken out in places such as Haiti, Indonesia, and Afghanistan. Several countries have blocked the export of grain. There is even talk that governments could fall if they cannot bring food costs down.

One factor being blamed for the price hikes is the use of government subsidies to promote the use of corn for ethanol production. An estimated 30% of America’s corn crop now goes to fuel, not food.

"I don't think anybody knows precisely how much ethanol contributes to the run-up in food prices, but the contribution is clearly substantial," a professor of applied economics and law at the University of Minnesota, C. Ford Runge, said. A study by a Washington think tank, the International Food Policy Research Institute, indicated that between a quarter and a third of the recent hike in commodities prices is attributable to biofuels.

Last year, Mr. Runge and a colleague, Benjamin Senauer, wrote an article in Foreign Affairs, “How Biofuels Could Starve the Poor.”

"We were criticized for being alarmist at the time,"; Mr. Runge said. "I think our views, looking back a year, were probably too conservative." ....

It takes around 400 pounds of corn to make 25 gallons of ethanol,” Mr. Senauer, also an applied economics professor at Minnesota, said. “It’s not going to be a very good diet but that’s roughly enough to keep an adult person alive for a year.”

Mr. Senauer said climate change advocates, such as Vice President Gore, need to distance themselves from ethanol to avoid tarnishing the effort against global warming. “Crop-based biofuels are not part of the solution. They, in fact, add to the problem. ....[more]
One of the difficulties with taking the various recommended steps which might or might not affect climate change for the better is that they are expensive and especially impact the poor — here and abroad — in very bad ways.

Food Crisis Starts Eclipsing Climate Change Worries | The New York Sun

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