China and Ethanol

It’s something of a downer for the democratic system when an authoritarian one ends up making the correct decision:

China’s communist rulers announced a moratorium on the production of ethanol from corn and other food crops yesterday at the very time that Western leaders are rushing to embrace alternative food-based fuel technology.

Beijing’s move underlines concerns that ethanol production is driving up rapidly the costs of corn and grain. It appears to reflect a growing reality about food-based alternative fuel: it is far more expensive both economically and environmentally, than Western politicians are likely to admit.

No, I wouldn’t want to abandon democracy just because it sometimes leads to those wrong decisions, but could we please get the EU to wake up to the fact that 10% bio-fuels really isn’t going to help matters? (To the extent that the EU is a democracy, of course.)

3 responses

  1. Whatever happened to the EU’s corn mountain? I thought we had a surplus of room to grow food at the moment, which (combined with CAP) led to vast overproduction of grain that no-one actually wanted.

  2. tired and emotional Avatar
    tired and emotional

    No, let’s not tell them that, I’ve just bought some grains ETC and I rather want the price of food to go up.

  3. windowlicker Avatar
    windowlicker

    So what’s gone wrong here – some kind of market failure or have we finally reached Malthusian limits?

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