[SustainableTompkins] Cornell seminar on $20B mistake on biofuels

[GayNicholson at aol.com]

AEM  Spring 2008 Seminar

401 Warren Hall  
May 1, 2:30-4:00 pm

The Looming  $20 Billion Mistake: How the New U.S. Biofuel Legislation Will 
Actually  Subsidize Oil Consumption

Harry de  Gorter
Department of Applied Economics and Management
Cornell  University


Harry de Gorter is involved in deliberations  regarding biofuels in the Doha 
negotiations and WTO trade disputes, and is  advising the Food and Agriculture 
Organization of the United Nations and the  World Bank on issues related to 
the impact of biofuels on food security and  global warming. 

Abstract: Recent U.S. energy legislation  follows other countries and imposes 
biofuel mandates while maintaining tax  credits. The result is that the 
intended effects of tax credits are reversed:  oil consumption is subsidized. This 
contradicts stated policy goals of  reducing dependence on oil and improving 
the environment and rural incomes.  The projected taxpayer costs of $20+ bil. 
in 2022 will therefore be pure waste  while at the same time increase 
pollution, wealth transfers to the Middle East  and farm input costs through higher oil 
prices. These insights are independent  of the current public outcry over 
indirect land use effects and CO2 life-cycle  analysis of biofuels. Meanwhile, 
developing countries have lost both ways  through intensified food insecurity 
because of the food price spike while not  being allowed to attain the full 
benefits because of biofuel import tariffs.  This seminar will address the complex 
issues regarding the social costs and  benefits of various biofuel policies 
and recommend policy options to better  achieve public objectives. 


======================================================= 
Brian M. Henehan, Senior Extension Associate  
Department of Applied Economics and Management (AEM) 
202  Warren  Hall                 Email:  bmh5 at cornell.edu  
Cornell  University                      Voice: 607-255-8800 
Ithaca, NY   14853-7801          Fax:    607-255-9984 

Web Page: _http://aem.cornell.edu_ (http://www.aem.cornell.edu/)  
----------------------------------------------------
Gay  Nicholson, Ph.D. 

607-533-7312 (home office)
607-279-6618  (cell)

1 Maple Avenue
Lansing, NY  14882
gaynicholson at aol.com

Sustainable Tompkins 
Program  Coordinator 
w_ww.sustainabletompkins.org_ (http://www.sustainabletompkins.org/) 

Southern Tier Energy$mart Communities
Regional  Coordinator
Cornell Cooperative Extension of Tompkins County
615 Willow  Ave., Ithaca, NY 14850
agn1 at cornell.edu




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