Ethanol to increase food prices and fertilizer use?
Ethanol, ethanol,
ethanol. GM loves ethanol. Most politicians love
ethanol. Investors love ethanol.
I still don't love ethanol.
If GM loves ethanol, I have to raise my eyebrows a little. When politicians love ethanol I start thinking pork, and when investors love an industry that isn't price competitive without the help of the government - then I know my tax dollars are subsidizing their profit margins.
Then, today I read that now might be the time to start investing in fertilizer companies.
"Population growth and rising incomes have already driven the world's grain stocks-to-use ratio very low, with a record low 2006/07 ending ratio of 14.8 percent forecast. The growing demand for ethanol, in an already tight market, should take already rising crop prices even higher. These conditions encourage planting and yield maximization, which can be expected to increase world fertilizer consumption." (more)
So, save money on gas, pay more for your food? I guess there is no such thing as a free lunch!
Still, I'd gladly pay more for food to reduce foreign oil dependency and global warming pollution, however, I have a problem reducing my foreign oil dependency while increasing pollution into streams, rivers, lakes, oceans and groundwater via fertilizer and pesticide run-off.
I guess I'll still focus more on reducing fuel consumption, via better automotive designs, hybrid technology, etc, rather than on just switching to a different fuel. While I'm hopeful for cellulosic ethanol, I still have cold feet for ethanol in general.
I still don't love ethanol.
If GM loves ethanol, I have to raise my eyebrows a little. When politicians love ethanol I start thinking pork, and when investors love an industry that isn't price competitive without the help of the government - then I know my tax dollars are subsidizing their profit margins.
Then, today I read that now might be the time to start investing in fertilizer companies.
"Population growth and rising incomes have already driven the world's grain stocks-to-use ratio very low, with a record low 2006/07 ending ratio of 14.8 percent forecast. The growing demand for ethanol, in an already tight market, should take already rising crop prices even higher. These conditions encourage planting and yield maximization, which can be expected to increase world fertilizer consumption." (more)
So, save money on gas, pay more for your food? I guess there is no such thing as a free lunch!
Still, I'd gladly pay more for food to reduce foreign oil dependency and global warming pollution, however, I have a problem reducing my foreign oil dependency while increasing pollution into streams, rivers, lakes, oceans and groundwater via fertilizer and pesticide run-off.
I guess I'll still focus more on reducing fuel consumption, via better automotive designs, hybrid technology, etc, rather than on just switching to a different fuel. While I'm hopeful for cellulosic ethanol, I still have cold feet for ethanol in general.
