Last week, we were wondering if ethanol could be a good solution for the environment, and to reduce CO2 emissions. Moreover, it is not a good solution for the food market. According to a United Nations report, sixty internationally foodstuff climbed 37% in 2007. Producers prefer selling their crops to ethanol refineries instead of food markets. Palm oil, soybean oil and other types of vegetable oil prices are increasing. Economists talk about the “oil shock from India to Indiana”. These oils are a good fat complement for poor people in Asia and Africa. Riots occurred in Mexico, Morocco, India (Mumbai), Guinea, Mauritania, Senegal, Uzbekistan and Yemen. In China, 3 people died, and 31 were injured, after a Carrefour supermarket announced a limited time promotion on cooking oil. Thus, the Chinese Government decided to control oil, meat, eggs, milk, and grain prices. Egypt banned rice exports and the European Union restricted palm oil imports.
Resources rarefaction added to the usual bad repartition between North and South will cause many problems. Ethanol is definitely not a good solution to reduce CO2 emissions. Nations would search and invest in alternative solutions, and overpass the powerful bio-fuel American lobby, especially when 9 billion people will live on Earth by 2050. The Third World instability will also affect our way of life.
Full story: http://www.nytimes.com/2008/01/19/business/worldbusiness/19palmoil.html?pagewanted=3&_r=2&ref=world
