Miranda

Do Biofuels Harm More than They Help?

@ Thomas: And how! I live in Utah, so I hear a lot about so-called "clean" coal...

Do Biofuels Harm More than They Help?

David: You've made some excellent points on the relevance of the environmental debate in investing.

Thomas: I have to agree with you about subsidies. It's a great way for pols to cater to their Big Ag supporters while at the same time pacifying environmentalists by saying: "Look, we're supporting the fight against dirty, polluting oil!" It also gets them in with those who are looking at energy independence as well. Too bad they skate over the fact that they are also giving big subsidies to oil companies as well...

Do Biofuels Harm More than They Help?

Of course this article isn't about making the most money. It's about environmentally friendly investing. And for many, that means supporting "sustainable" energy, some of which can make money (solar stocks and some clean energy ETFs have been doing okay). The point of this article was not to bring up things like solar, wind and nuclear (which are all better for air quality), but rather point out that the biofuels we are focusing on now are not as great as many seem to think.

Jatropha, though, does not destroy topsoil. It actually turns bad topsoil into something usable later. And, unlike corn ethanol, is fairly efficient.

And yes, CO2 does help plants. Unfortunately, too much of it can be harmful. Too much of nearly anything can be harmful. And when what takes the CO2 from the air is being destroyed by clearing, it can be a problem.

Global warming, though, is not something I am overly concerned about. I see it as a red herring. Rather, pollution and the quality of the air we breathe (and the attendant health issues) is more of an issue for me. But the pols want us focused on a global warming debate. Why? Because air pollution and air quality is something we can work on, and something that requires actual action. Global warming by humans can't really be proven definitively at this time, so focusing on a debate forestalls having to take action.

Do Biofuels Harm More than They Help?

I have written about Jatropha for The Panelist in the past, and agree that it is a an excellent resource that we are should be utilizing. Unfortunately, few, if any, Americans are even aware of it. To BP's credit, it is investing a small amount in Jatropha. It would be an excellent way to help boost developing economies while at the same time producing the means of a biofuel that is more efficient and environmentally friendly.

As for the chicken analogy -- I'm not sure about the point, but we aren't on a desert island (thankfully) and there are other things we could be developing instead of just using oil until it's gone. I think a complementary solution could be used. Perhaps feed some of the cereal to some of the chickens, and eat a mixed diet of chicken and cereal, slowly weaning one of the chicken. (Since the chicken will be gone anyway.) Of course, with both chicken and cereal, it is possible to get more of both. Chickens lay eggs and cereal can be planted and harvested. You can't get more oil.