GoodFuels

Don’t blame biofuels, study says

A London-based group that measures investments in alternative energy solutions released a study that shows biofuels aren’t to blame for the high food costs.  New Energy Finance says that biofuels play a “far from dominant role” in the food prices.  So, what is it?

Supply and demand is the biggest culprit for price gains of up to 244% for some crops in the last four years, as people in countries like China started eating more beef (which requires a lot more grain that making noodles does.) The next biggest factor, in both grains and food oils, is crude oil, since that’s a crucial input for everything from tractor fuel to fertilizer. Finally, the weak dollar plays a big part as well, making global commodities (including crude oil) trade at higher levels.

via The Wall Street Journal