CASE FOR AND AGAINST BIOFUELS

Case For And Against Biofuels



Case For And Against Biofuels

Introduction

In light of the strong evidence that growing corn, soybeans, and other food crops to produce ethanol takes a heavy toll on the environment and is hurting the world's poor through higher food prices, consider this astonishing fact: This year, more than a third of the U.S.'s record corn harvest of 335 million metric tons will be used to produce corn ethanol. What's more, within five years fully 50 percent of the U.S. corn crop is expected to wind up as biofuels.

Case for and against the use of Biofuels

Here's another sobering fact. Despite the record deficits facing the U.S., and notwithstanding President Obama's embrace of some truly sustainable renewable energy policies, the president and his administration have wholeheartedly embraced corn ethanol and the tangle of government subsidies, price supports, and tariffs that underpin the entire dubious enterprise of using corn to power our cars. In early February, the president threw his weight behind new and existing initiatives to boost ethanol production from both food and nonfood sources, including supporting Congressional mandates that would triple biofuel production to 36 billion gallons by 2022.

Congress and the Obama administration are paying billions of dollars to producers of biofuels, with expenditures scheduled to increase steadily through 2022 and possibly 2030. The fuels are touted by these producers as a “green” solution to reliance on imported petroleum, and a boost for farmers seeking higher prices.

Yet a close look at their impact on food security and the environment — with profound effects on water, the eutrophication of our coastal zones from fertilizers, land use, and greenhouse gas emissions suggests that the biofuel bandwagon is anything but green. Congress and the administration need to reconsider whether they are throwing good money after bad. If the biofuel saga illustrates anything, it is that thinking ecologically will require thinking more logically, as well.

Investments in biofuels have grown rapidly in the last decade, accelerating especially in developed countries and Brazil after 2003, when oil prices began to climb above $25 per barrel, reaching a peak of $120 per barrel in 2008. Between 2001 and 2008, world production of ethanol tripled from 4.9 billion gallons to 17 billion gallons, while biodiesel output rose from 264 million gallons to 2.9 billion gallons. Together, the U.S. and Brazil account for most of the world's ethanol production. Biodiesel, the other major biofuel, is produced mainly in the European Union, which makes roughly five times more than the U.S. In the EU, ethanol and biodiesel are projected to increase oilseed, wheat, and corn usage from negligible levels in 2004 to roughly 21, 17, and 5 million tons, respectively, in 2016, according to the Organization for Economic Cooperation and Development.

In the U.S., once a reliable supplier of exported grain and oilseeds for food, biofuel production is soaring even as food crop export demand remains strong, driving prices further upward. Government support undergirding the biofuels industry has also grown rapidly and now forms a ...