Ethanol: Is it worth the true cost - Essay Example

Some of the major reasons for such a huge growth is attributes to better seed quality, enhanced used of fertilizers and more mechanized methods of farming1. However, apart from an increase in the food production, there has also been a considerable increase in the prices of food materials that has witnessed a radical change over the past decade. Part of the problem lies in the increased pressure to produce enhanced quantities of biofuels that are being seen as alternatives to the depleting quantities of crude oil.

The trend towards biofuels production through food grains has gained additional momentum owing to the tax subsidies and fuel legislations by the United States that are being seen as reasons to drive the prices higher2. Since 2000, the production of ethanol has gone up from a mere 6 % to a staggering 26% and the numbers are expected to rise further3. Farmers are bound to benefit as a result of price hike and the encouragement from the US government has further allowed massive investments into ethanol refineries.

The production of biofuels has tripled since 2000 although its contribution to the national consumption is still quite meager at 3 %4. The thrust towards biofuels (especially ethanol) has been driven by the fact that it is being viewed as a means to provide better energy security and is believed to aid in global warming. However, such beliefs are illusionary. Apart from not being so worthy for providing any environmental benefits, such a use as a replacement for gasoline will not help in reducing the emission of greenhouse gases.

Additionally, the demand for biofuels has increased the amount of deforestation in some countries in countries like Indonesia where a forest was cleared to make way for a palm oil production facility to generate biofuels5. This, as might be evident from the discussions above would seem to indicate that this is not a case for