In the search for an alternative way to power our cars, more Americans are experimenting with biofuels. Ethanol, made primarily from corn in the U.S., is one alternative fuel we already have the technology to produce in mass quantities -- the federal government has instituted mandates for ethanol production and subsidies for farmers who agree to grow corn for the fuel. But the fuel source, already the cause of some political controversy within the U.S., has now come under fire internationally.
The U.K.'s Guardian reports, "Biofuels have forced global food prices up by 75% - far more than previously estimated - according to a confidential World Bank report." According the Guardian, "Senior development sources believe the report, completed in April, has not been published to avoid embarrassing President George Bush."
The 75% estimate "emphatically contradicts the US government's claims that plant-derived fuels contribute less than 3% to food-price rises. It will add to pressure on governments in Washington and across Europe, which have turned to plant-derived fuels to reduce emissions of greenhouse gases and reduce their dependence on imported oil."
How can U.S. corn subsidies boost food prices worldwide? McLatchey-Tribune News Service explains, "The United States...offers subsidies, estimated to be worth $11 billion a year, to farmers who grow corn for ethanol production. Hundreds of farmers have switched from growing wheat to corn so they can cash in." Many foreign countries import much of their grains from the U.S. With U.S. farmers abandoning other crops to produce corn for ethanol, the supply of those grains has crashed -- and prices more than doubled. "Last month, the World Bank estimated that the food crisis has pushed 100 million people worldwide into abject poverty. The International Monetary Fund said that nearly half of the problem results from the diversion of food crops for use in biofuels."
Criticism of biofuels has come from some surprising places. The New York Times notes that World Bank President Robert Zoellick "is calling for the United States and countries in Europe and elsewhere to end their subsidies of and tariffs on fuels made from corn and other foodstuffs." Zoellick previously served as a Deputy Secretary of State and top trade envoy in the Bush administration. Bush himself nominated Zoellick to the World Bank presidency.
OPEC is even pointing the finger at Ethanol as a partial cause of high gas prices. Marketwatch reports that OPEC President Chakib Khelil recently told reporters "the weak dollar and geopolitical worries are responsible for 60% of the rise in crude prices," but added "the intrusion of bioethanol on the market was alone responsible for the other 40%." Marketwatch notes, "He didn't explain why more ethanol would drive crude prices higher."
We should note that the worldwide criticism of ethanol centers around its impact on food supplies, but it may be possible to make ethanol without using food. The International Herald-Tribune notes, "Exxon Mobil, Chevron and other major international oil companies are seeking technology breakthroughs to make gasoline and diesel from renewable sources as they shun fuel from food crops. Companies are researching ways of making fuels from waste products and non-edible plants to supplement traditional oil supply."
Massachusetts' Daily News Tribune explains, "'Second generation' biofuels can be made from waste products, like wood chips, switchgrass or corn husks. Other options are in the research phase, including making fuel from algae or similar fast-growing aquatic organisms."
Research other green automotive technology with U.S. News' car rankings and reviews
