Ethanol is a stepping stone

This is interesting, and  would be more interesting if there were a measure of how much diverting corn into ethanol (25% of the corn crop in 2007 produced 2.65% of the US total demand for gasoline in 2006) had an effect on prices of food. Northey is right. Corn ethanol has to be a transitory technology. But the US will need  to find ways to get ethanol from the field to the pump. Where is the infrastructure going to come from, who’s going to build the pipelines. And at the end of the day how much real difference will it make if there is no corresponding increase in fuel efficiency? 

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One Response to Ethanol is a stepping stone

  1. larry hagedon 4 September, 2008 at 8:56 pm #

    The thing we need to remember is that American farmers do not have a shortage of food production. We can and do produce more food, aninmal feed, pharmaceuticals, industrial chemicals and fuels than the marketplace can consume.

    Our capacity to increase production of all commodities is enormous. It is limited by the markets, not by our ability to continue to increase production.

    We market all the corn based foods the world markets will allow us to market. The markets are saturated and everything is in surplus, there is no shortage.

    Threfore it is a specious argument that people are going hungry or the prices are going up because we made the food into fuel. There is plenty of both to go around and no reason to bid prices up.

    People that are hungry are hungry because of politics, war and the high cost of oil, not because of bio-fuels.

    larry

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