Biofuel Subsidies: Good, Bad or Just Wrong?

All biofuels are not the same. No one eats switchgrass and cellulosic ethanol using the parts of plants that humans don't eat makes sense. I still favour tax breaks instead of subsidies though. The government itself need not spend money for things that private business is interested in solving because of the profit potential.

Bio fuels are good sources of alternate cleaner energy and a very profitable option for farmers On the other hand, producing bio-fuels causes serious ramifications to human beings. I feel providing subsidies to the bio fuels is totally wrong since the cost of producing them is not price worthy. Analysis and reports from magazines show that producing bio-fuels has driven the cost of food around the world. Farmers growing bio fuels crops, know that it is not used for human consumption as a result they use excessive amounts of chemicals to increase productivity, which ultimately degrades the soil and also the water table. Bio fuels make farmers prefer cash crops(corn) than primitive crops such as wheat, soy bean etc, Rising food prices also constitute one of the main reasons for the inflation in the economy. I strongly think it is not late to review “the policies” for farming and environment sustainability. .We have to increase productivity of food grains to fight hunger in the world, than producing bio-fuels to run automobiles. I agree with Saabira, that we need to end the bio-fuel mechanism option until a viable alternate source is found.

I would agree with Saabira, the potential of biofuels, as an alternative to carbon-based fossil fuels, despite its advantages, may have a difficult time finding a strategic rostrum. As an alternative form of energy, biofuels increase energy performance. Nevertheless, biofuels continue to present economic; and more specifically, “bottom-line” cost challenges. For instance, one of the immediate struggles facing biofuel producers is fuel that is produced by the producers, often is frequently shipped to distribution points hundreds of miles away; and then, shipped back to filling stations. In other words, transportation; specifically, trucking costs to transfer or move the biofuel, becomes an additional expense – and as such, the cost is an expenditure added to the overall cost of production. Additionally, the distribution centers are owned by oil companies – which control the distribution networks. Thus, since the biofuel companies may not own a direct outlet to their customers, those same biofuel companies end up negotiating with the larger filling station chains. Nevertheless, the global biofuel market will continue to grow. A world facing unstable energy prices needs innovative alternative sources to help shift the business, political and economic landscape. As a result, cities, states and various countries will continue to seek increasing their investments in cleaner energy; such as biofuels, as consumers are demanding cleaner products. Even though new advancements are on the precipice, that is, poised for further development, including new methods of refining; distribution costs remain an ongoing and continued sense of concern; and remain a cost disadvantage. However, if entrepreneurs and companies can liberate and unravel such a “fixed cost;” then, biofuels can become part of a forward-thinking energy solution; acting as a more efficient and less polluting alternative.

Jeff I agree with you that unless companies that are currently creating bio fuels can find a way to produce and distribute it in more efficient ways, then it is not going to be a practical alternative source of energy. In addition, if we are not able to prove that the opportunity costs of losing out on potential crops for food purposes is greater than the amount of energy being produced, then it is going to be hard to increase biofuel consumption.

Jeff I agree with you that unless companies that are currently creating bio fuels can find a way to produce and distribute it in more efficient ways, then it is not going to be a practical alternative source of energy. In addition, if we are not able to prove that the opportunity costs of losing out on potential crops for food purposes is greater than the amount of energy being produced, then it is going to be hard to increase biofuel consumption.

Jeff I agree with you that unless companies that are currently creating bio fuels can find a way to produce and distribute it in more efficient ways, then it is not going to be a practical alternative source of energy. In addition, if we are not able to prove that the opportunity costs of losing out on potential crops for food purposes is greater than the amount of energy being produced, then it is going to be hard to increase biofuel consumption.