The E-Xchange: Archives

The E-Xchange — Drought

A Revelation at the Wall Street Journal

September 05, 2012

Less than a month ago, the famously anti-ethanol editorial writers at the Wall Street Journal howled that the Renewable Fuel Standard (RFS) was exacerbating drought-related "corn shortages" and "driv[ing] food prices up in a way that punishes consumers around the world�" And reaching deep into their dead-and-buried-biofuel-myth grab bag, they pulled out this emotional beauty: "�biofuel mandates increase hunger and hunger-related diseases at home and abroad�" Yet, yesterday, inconspicuously stashed on the WSJ "Real Time Economics" blog, is a short post by Neil Shah entitled "Hard to Pass Food-Price Spikes on to Consumers." In it, Mr. Shah breaks down data from the U.S. Departments of Labor and Agriculture and concludes the impact of the drought on food prices will be "manageable" and "far from crippling for the average consumer."

Posted in Corn prices, Drought, Ethanol, Food, Renewable Fuel Standard

Impacts of Waiving the Renewable Fuel Standard (RFS) on Household Spending on Food and Fuel

August 28, 2012

This summer, several governors have submitted letter to the EPA requesting a waiver of the RFS for 2012 and 2013. Analysis from the RFA shows that waiving the RFS requirements for 2013 would actually result in a net increase in annual household spending of approximately $24-$85 due to increased spending on gasoline. Thus, waiving the RFS in 2013 would do more harm to American consumers than if EPA allows the program to continue to function as designed.

Posted in Corn, Corn prices, Drought, Ethanol, EPA, Food, Renewable Fuel Standard