Food vs. Fuel
April 21st, 2008 at 10:28 pm by Eric Halvorson under Eric Halvorson's Blog
The BBC says, as of this month, all fuel in Britain must contain “an element” of biofuels. But, in a recent interview, a representative of the International Monetary Fund blamed biofuels for an increase in the price of other products. Simon Johnson, the IMF’s Chief Economist said biofuels “have played quite a significant role in the increase in food prices over the last couple of years.” He estimated the increase at 20% to 30% in that period. So, Johnson called for an end to the subsidies and tariffs that support the biofuel industry. He told the BBC there are better ways to support agriculture and new technology.
A university professor said a variety of “complex reasons” explain the increase in food prices. A drought in Australia is among them. She also seemed to caution against fears about the use of food crops for biofuels. She’s depending on the use of trees and grasses in place of corn. She says those alternatives will also be ” four or five times more efficient” than using food crops for fuel.
