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Is Ethanol Getting a Bum Rap?

Posted by Matt in May 4th, 2008

Corn-based fuel isn’t the villain critics contend, but shifting to other crops is critical

Blame energy costs, not ethanol, for your grocery bill

Has ethanol contributed to the surge in food prices? Not very much, concludes a group of agricultural economists at Texas A&M University in an Apr. 10 report from the school’s Agricultural & Food Policy Center. “The underlying force driving changes in the agricultural industry, along with the economy as a whole, is overall higher energy costs,” the researchers conclude, not biofuels. In addition, reducing the amount of ethanol the government requires each year “does not result in significantly lower corn prices,” they say. That’s because the ethanol industry is here to stay, since it is now being driven largely by market forces rather than by the government’s renewable-fuel mandate.

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