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  • Do Biofuels Harm More than They Help? [View article]
    Good article -- with a high degree of relevance to investing in this sector.

    Georealist ("So..the investment upshot of this article is...?"), DirtSimple ("This has nothing to do with investing ..."), and Lefty (I'm sooo sick of tree huggers..."): You've missed a crucial point here. As Gabby pointed out in a comment on this article seekingalpha.com/artic... , there is currently a 51 cent/gallon tax credit for US ethanol producers. At least part of the reason for that is the growing concern about the environment among voters.

    But as the environmental case for biofuels weakens, political support for subsidising them will wane. Note:

    seekingalpha.com/artic...

    So tree-hugging, feel-good environmental babble has a LOT to do with investing in this sector, because if sentiment towards biofuels turns negative, the political support for the subsidies will disappear, and the corn ethanol stocks will implode.
    Feb 19 08:23 am |Rating: 0 0
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