Are Biofuels contributing to inflation in the U.S.?

With the steady rise of demand for biofuels due to subsidies and governement regulations, displacement of crops may lead to higher inflation in food prices. According to Shane Romig of the Associate Press, Argentines are not all happy about the government's new ethanol/bio-diesel plan.

Although few would argue against the environmental benefits of ethanol and other crop-based fuels, economic feasibility has long been in question. This article makes an important point in that diversion of crops towards fuel will likely lead to higher food prices. Despite vast differences in wealth, Americans in the lower and bottom middle-class could possibly face drastic changes to their food purchasing habits.

This may go a long way to show that hydrogen fuel-cell and other alternative means such as batteries may ultimately replace Ethanol as the mobile energy for the future.

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