biodiesel biofuels

Should governments mandate biofuels?

In his 2007 State of the Union Address, President bush called for a several-fold expansion of the Renewable Fuel Standard,
a government program that mandates the use of “renewable” biofuels such as ethanol and biodiesel. Last year, the program required US fuel makers to use four billion gallons of renewables. The new plan would increase that requirement to 35 billion gallons by 2017. Combined with the raft of subsidies, tariffs, and tax breaks already in place to support US biofuel producers, the plan’s approval would very likely spark a rapid expansion of ethanol and biodiesel production in the US over the next decade.

No, unfortunately the result is the law of unintended consequences. That is if we require biofuels it will raise prices of corn and place economic pressure on the food supply. The seemingly environmental friendly solution will result in (a) higher gas prices, as biofuels are very expensive to produce and (b) higher food prices. One problem …solved … two more created

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