Ethanol: DOE Weighs in on "Food Versus Fuel"

 

The U.S. Department of Energy has issued a response to an inquiry by the Senate Energy Committee on the effect of increased biofuel production on world food prices. The DOE response admits that the food versus fuel issues are complex, and cautions against “hasty judgments” driven by what it calls “agenda driven calculations”. Their report claims that biofuels are responsible for only 8 percent of the 168 percent rise in grain prices since 2004, and cites other factors that can be blamed for the majority of the rise in global food prices, including increased cost of petroleum-based fertilizers, and the use of high-cost petroleum in the harvesting and transportation of food. The DOE contends that without biofuels, the cost of gas would be higher by 25 to 35 cents a gallon, and that biofuels are reducing greenhouse gas emissions and America’s dependence, on foreign oil.