Food For Oil

The Conservative government announced $1.5-billion for biofuels in the last budget. This met with approval from farm groups because it promises to raise the price of their product. But environmentalists should be wary before they throw their support behind it. Studies show that ethanol is not the answer to greenhouse gas emissions; this Parliamentary study, for example, provides a sobering analysis of its impact. Now, we shouldn't abandon good half-measures because they fail to solve the problem, but it isn't clear that ethanol is a good half-measure. $1.5-billion is a large investment for such a small return.

Furthermore, this article in Foreign Affairs argues, rightly, that high food prices, while good for farmers, are bad for people who buy food. The people most badly hurt, of course, are those who can't afford the higher prices. There are better ways to protect the environment than distorting world markets, driving up the price of food.