All those "green" people out there may want to take into consideration the fact that biofuels are unlikely to have a significant affect on the need for oil, and government subsidies for biofuel projects are jacking up the price of food. That would tend to add to inflation and make it harder for developed countries to feed the poor in other parts of the world.
The FT writes that a report from the Organisation for Economic Co-operation and Development states "support for alternative energy sources will lead to surging food prices and the potential destruction of natural habitats." So much for the "green" aspects of biofuels. Imagine a world where forests are cut down to product corn.
The report also indicates that "biofuels would cut energy-related emissions by 3 per cent at most."
The oil industry did not write the new report, but they must be reading it with glee.
Douglas A. McIntyre
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