OECD: biofuel policy is costly, ineffective, and raises food prices
Another nail in the coffin for biofuels and government support. A new report from the Organisation for Economic Co-Operation and Development (OECD) released today takes a close look at government support for biofuels — its cost and some of the unintended consequences.
Here’s what their press release states:
Government support of biofuel production in OECD countries is costly, has a limited impact on reducing greenhouse gases and improving energy security, and has a significant impact on world crop prices. . . .
The report notes:
In most countries, biofuels remain highly dependent on public support policy. This report estimates support to the US, EU and Canadian biofuel supply and use in 2006 at about USD 11 billion per year, projected to rise to USD 25 billion in the medium term. . . .
Lots of good charts and figures too. Some of their recommendations and their implementation may involve the heavy hand of government, however.