What Not to Do 101: Ethanol Policy
Nicolas Loris /
Though intended to help consumers and reduce greenhouse gas emissions, the ethanol mandate has done just the opposite, contributing to high food and gas prices with little environmental benefit. A Congressional Budget Office (CBO) report released yesterday confirmed this:
Increased use of ethanol accounted for about 10 percent to 15 percent of the rise in food prices between April 2007 and April 2008. In turn, increases in food prices will boost federal spending for mandatory nutrition programs such as the Supplemental Nutrition Assistance Program (SNAP, formerly known as Food Stamps) and the school lunch program by an estimated $600 million to $900 million in fiscal year 2009.”
And its supposed environmental benefit?