Ausbuy

Biofuels And The World Food Markets

May 5th, 2008

Global warming and how we should deal with it has provoked much debate and spawned new industries where entrepreneurs expect to make their fortune (with the help of government assistance) and at the same time fight this new threat. Many of the technologies on which these businesses are based have been poorly researched and some have had unintended consequences.The most notable example of the above is the biofuel industry. The theory of biofuels is that we use them instead of fossil fuels which are wasting assets. Its use was made popular by Brazil in the 1970’s when the price of oil went through the roof and they had vast quantities of sugar they couldn’t sell. Ethanol provided as alternative fuel to run their cars. This was an economic decision where the Brazilians were prepared to accept this less efficient fuel and the high cost of production was more than offset by the world oil price at that time.

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