Next generation of biofuels is still years away | Hattiesburg American | hattiesburgamerican.com:
Biofuel is a byline in the energy mix.
So biofuel is mandated. And because it is ordered to be true, it must be.
And because it is ordered to be true, the mandate must meet the expectations.
Thus is the problem with government subsidies… Burning food for fuel (corn to ethanol) is still a rather dumb idea, even though it is finally getting efficient enough that there is a small net gain gallon-equivalent per gallon of ethanol.
What would work perfectly well, from an economics point of view, is to raise taxes on non-renewable sources of fuel and energy. A simple carbon tax would do it. It could be progressive over time.
Then the more accurate costs of non-renewables would allow for the energy economy to shift and make its on path forward. The types of renewable fuel would decide themselves and the government would be out of the picture setting mandates in less-than-smart — some might say foolish — areas.
Of course the politicians who set the wheels in process for a carbon tax or a cap-and-trade (tax?) will soon find themselves out to pasture shoveling biowaste.