Biofueling the World

In an October 31 article in the Financial Times, Martin Wolf wrote on the problems associated with the production of biofuels.

Summarising Wolf, the subsidies for biofuels are liberal and misplaced to an extent where they are “often greater than the cost fossil fuel equivalent.”

Also, biofuels do not contribute to greenhouse gas emissions as much as they are expected to – around 13-18 percent less than conventional fuels. A lot of this, of course, has to do with the fact that large gas-guzzling vehicles, which are flexible in terms of fuel usage end up consuming larger quantities of environmentally-friendly fuel.

The high subsidies are also translating into high food prices, which is good for producers, but bad for consumers and can also place increasing pressures on limited and water supplies in poor, food-importing economies.

The last spells environmental threats for these economies and an unsustainable, vicious cycle.

Looks bad? Perhaps, but it depends on one’s perspective.
I agree with Wolf to the extent that market-distorting subsidies for producers need to be removed.

Of course, people need incentives to find smaller, more energy-efficient vehicles more attractive.

However, this still begs one major question. Even if biofuels are produced efficiently and economically, will there be enough to produce sufficient food for a world population that is slated to spiral?