While bio-fuel might produce an alternative to fossil fuels, the rising cost for resources used in bio-fuels creates a new dilemma. Many poorer countries spend much of their income feeding their population and rising food costs create new shortages in the wake of more expensive foodstuffs. On the other hand, other poor countries with strong agricultural bases benefit by a lack of competition in the international market and higher profits for their crops.
To solve this new problem, many world leaders have proposed that fuel be produced from crops grown in areas that would produce a low yield or from crops not consumed by humans. The Wold Bank, according to a report published in 2008, states that the corn-based bio-fuel production policies of the United States helped drive food prices up nearly thirty percent while the Brazilian sugarcane-based policies did not have an appreciable effect on food prices. Critics of this report point out until more efficient technologies are developed, the law of supply and demand will likely dictate the course of public policy with some poorer countries benefiting more than others.
January 21st, 2011
