Posted by
on Sunday, February 10, 2008 11:25:53 PM
In the latest evidence of the lies and treason of the environmental
left, the global warming scam fueled biofuel craze has now been shown
to actually generate MORE carbon emissions than fossil fuels when the
total process' emissions are counted. The study, cited in a New York
Times
article,
points to the fact that the land cleared for production of biofuels
alone generates "93 times the amount of greenhouse gas that would be
saved by the fuel made annually on that land", among other production
and transportation emissions which, taken together, belie the claim
that the efforts by Congress to interfere in the markets on behalf of
the planet are doing anything other than expanding the scope and
control of government into our lives to make our decisions for us. For
those liberals who value their perceived status among their peers in
terms of their environmental credentials, this information will
undoubtedly be ignored, but for the rest of us "green elephants" a hard
look at environmental fact and fiction is in order to generate real
environmental policy.
The darling of the biofuels craze,
ethanol, was a corn farmer's subsidy packaged as an eco-friendly big
government solution in search of a problem from the start. At a little
over $2.20 per gallon of gasoline replaced, this seemingly efficient
fuel benefits from massive government subsidies (and since the
government produces no money of its own, it benefits from
your subsidies) amounting to "
7 billion dollars"
during fiscal year 2006 and yielding 4.9 billion gallons of ethanol.
This amounts to a subsidy of $1.45 per gallon of ethanol produced,
making ethanol hardly more cost effective than standard gasoline.
Furthermore, as congress continues to meddle in the energy markets,
energy companies are starting to invest not in increased refining
capacity to meet our needs, but in new equipment to meet the expectedly
increasing demands of an activist congress which has broken the markets
system of allocating resources to the chagrin of all when filling their
tank. If this weren't bad enough, the ripple effects of the massive
corn subsidies are changing the relative prices of other farmed
commodities, causing increased prices for meat, corn, wheat, hops, and
virtually every other farmed good to increase as the supply of land
devoted to food production shrinks in favor of ethanol production.

Inflation
numbers are often reported in two categories: all consumer goods, and
consumer goods excluding food and energy. The reason for this is that
food and energy prices tend to be both more volatile, and they tend to
react faster to economic shocks than other comoddities, since we buy
these goods more frequently than any other item in our lives. With
government mandated ethanol production, both food prices and energy
prices are increasing at faster rates than they would in a truly free
market, thus increasing the rate of real inflation, driving down
consumer spending in other sectors of the economy, and depressing bond
yields which are by definition valued in terms of our expectations of
future inflation. These ripple effects leave no corner of the economy
untouched, from the bond market to the housing market to the
environment.
Of course, as these prices rise more land is being
converted into cropland in order to satisfy the joint demands of the US
congress and the people. Some of this land is scrub land, and some is
rain forest, both of which represent a carbon absorbing "sponge" which
will no longer be retrieving carbon form the atmosphere. Additionally,
the favored method of burning the land to prepare for planting in and
of itself generates sufficient carbon that it would take "93 years" of
ethanol production to offset the carbon produced by this action,
according to Joseph Fargion, a scientist at the
Nature Conservancy.

But
as alarming as these findings are, and given that the authors of the
recent studies felt it necessary to send letters to the Bush
administration and leaders in congress, the mandatory biofuels
supporters like Nicholas Nuttall say they "don’t want a total public
backlash that would prevent us from getting the potential benefits".
Congress has mandated that 15% of all transport fuels are to be made
from biofuels by 2022, an astonishing increase from the current levels;
and after paying an additional
3.6 billion at the pump
in 2006, not including the 7 billion in tax dollars spent on subsidies,
we are now looking at tripling the amount of ethanol consumed
domestically in the next 14 years.
The combined costs of this
increase will be staggering. From high inflation, to expensive food, to
poor returns on investments, to higher interest rates on home loans, to
increasingly expensive fuel and worse than fossil fuels emissions;
biofuels will not ever achieve the goal of energy independence or
environmental protection. But does that mean we should throw up our
hands and stop trying? Of course it doesn't, but our methodology needs
to change. Already, just as happened during the Arab oil embargo of the
1970's, the high price of gasoline has pushed people, all by
themselves, to move toward smaller and more fuel efficient cars. As a
finite resource, we will adjust to the increasing relative scarcity of
hydrocarbons through the market system, raising the fuel efficiency of
our transportation and even finding alternative fuels when it ceases to
be prohibitively expensive to do so. As someone who hikes, camps,
fishes, and hunts more than the average person or "environmentalist" I
have nothing short of a personal interest in preserving the outdoor
lifestyle I enjoy to share with my (future) children. In my field
(economics), pollution represents the classic example of what we term
an externality: a cost or benefit attributable to an economic activity
not reflected in the price of the goods or services being produced. One
of the few instances in which I support government intervention in the
market for
any
reason is to internalize externalities. A pollution tax system with
tradeable credits (mitigated by a 1:1 ratio cut in other corporate
taxes) would go further toward reducing our harmful emissions than any
level of expenditure of our government money imaginable, but
unfortunately when those in government attain their power and prestige
not by empowering us to engage our problems ourselves but by using our
shared challenges to further enslave us to an ideology of guilt and
powerless incompetence, nothing is likely to actually get done.