OECD warns about biofuel subsidies’ effects on food prices and the environment
Subsidies for biofuels are leading to food price inflation and will cause environmental damage, so says the Organization for Economic Cooperation and Development (OECD) in a new report to be discussed at Paris meetings with ministers and representatives of about a dozen governments. According to news articles in the Financial Times, Drudge, and others, the OECD report says—
The current push to expand the use of biofuels is creating unsustainable tensions that will disrupt markets without generating significant environmental benefits.
The organization recommends that biofuel subsidies should be phased out and “technology neutral” incentives be used instead. Check back on CEI’s much earlier analyses of the pernicious effects of biofuel subsidies here and here.