Ethanol could increase corn prices and exacerbate climate change

In a paper recently published in Nature Climate Change, Diffenbaugh et al. (2012) analyze the response of U.S. corn markets to climate volatility under various alternative energy futures, one of which envisions “a binding renewable fuels standard for corn ethanol and capacity constraints on ethanol absorption.” Although this scenario was initially viewed as a strong positive element of both agricultural and environmental policy, the four U.S. researchers unfortunately found that a binding mandate of this nature likely “enhances the sensitivity to climate change by more than 50%,” with the result that it could well “cause U.S. corn price volatility to increase by more than 50% in response to historical supply shocks in the domestic market,” citing Hertel and Beckman (2011).

View the original article here: The Biofuels Mandate and US Corn Prices

Outbreak Daily Digest
Biotech Facts & Fallacies
GLP Podcasts
Infographic: Here’s where GM crops are grown around the world today

Infographic: Here’s where GM crops are grown around the world today

Do you know where biotech crops are grown in the world? This updated ISAAA infographics show where biotech crops were ...
News on human & agricultural genetics and biotechnology delivered to your inbox.
glp menu logo outlined

Newsletter Subscription

* indicates required
Email Lists
Send this to a friend