More on ethanol: No free lunch

Why ethanol? You won't find the answer by adding up either the energy or the economic costs. The latest, via the rarely censored Paul Krugman.

No free lunch? Courtesty of Bloomberg: "U.S. plans to replace 15 percent of gasoline consumption with crop-based fuels including ethanol are already leading to some unintended consequences as food prices and fertilizer costs increase."

1. Use S/D to explain the fertilizer cost increase.

2. Show the consequence in the market for things we eat.

(To start class on Tueday, Feb. 26).

What does the ethanol industry say? Again from Bloomberg,
Bob Dinneen, president of the Renewable Fuels Association in Washington
... whose organization represents ethanol producers including Archer
Daniels Midland Co. "I don't think we have to choose."

Roll back scarcity. Must not exist anymore.