Wednesday, February 24, 2010

Biodiesel Bill

A recent job bill going through Congress may mean good things for producers of biofuel in the United States. The bill is for the reintroduction of a tax credit for $1 per gallon of biodiesel produced. The break is aimed at making biodiesel competitive with gasoline prices. Earlier this month the EPA gave soy based biodiesel a pass saying they passed the 50 percent emissions requirement. Many farmers are happy about the new bill saying it will boost their business but many other citizens are not excited about the bill. The Earth Policy Institute states that last year alone grain used to produce biodiesel was enough to feed 330 million people. My question is then whether or not we should be spending this much money on something that may not be the best thing for our country? Is economic stimulus for a remote population enough to justify using an energy source that we don't necessarily need right now?


http://www.businessgreen.com/business-green/news/2257773/jobs-bill-fuel-controversial

5 comments:

  1. I'm curious about the specifics. 330 million people where and how? I'm sure the farmers would want a profit vs just feeding hungry people. I don't think this is justified with my limited knowledge on the subject the article points out that biodiesel has not met expectations so why reward that?

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  2. I think economic stimulus right now is a good motive for this policy, but biodiesel and any alternative enery resource that isn't a fossil fuel helps our cause in finding a solution to the energy issue.

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  3. There is currently enough food produced to feed the entire population, especially when one consideres the amount of grain used to feed livestock which could be used to feed people in third world countries. The problem is not having the ability to get the food to the right people and ensuring that the farmers do not loose money by feeding poorer nations. I think this stimulus package is a step in the right direction by encouraging the use of biodiesel over the more harfmul alternative, gasoline.

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  4. It is a positive sign that economic incentives are being provided for biodiesel. However, it seems that unless more efficient forms of biodiesel can soon be made viable for public consumption, the energy required in the biodiesel process makes it only a slightly better option than gasoline.

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  5. The problem with trying to hypothetically allocate biofuel grain for consumption is that the issue with hunger is not so much food as it is distribution. Plenty of food can be produced, but getting it to those who need it poses a problem as aid usually goes through governments first, who can be corrupt, inefficient, etc. Incentive is always good for a budding industry and its at least worth exploring.

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