Grains gone Wild, de Paul Krugman:
These days you hear a lot about the world financial crisis. But there’s another world crisis under way — and it’s hurting a lot more people.
I’m talking about the food crisis. Over the past few years the prices of wheat, corn, rice and other basic foodstuffs have doubled or tripled, with much of the increase taking place just in the last few months. High food prices dismay even relatively well-off Americans — but they’re truly devastating in poor countries, where food often accounts for more than half a family’s spending.
(...)
How did this happen? The answer is a combination of long-term trends, bad luck — and bad policy.
Let’s start with the things that aren’t anyone’s fault.
First, there’s the march of the meat-eating Chinese — that is, the growing number of people in emerging economies who are, for the first time, rich enough to start eating like Westerners. Since it takes about 700 calories’ worth of animal feed to produce a 100-calorie piece of beef, this change in diet increases the overall demand for grains.
Second, there’s the price of oil. Modern farming is highly energy-intensive: a lot of B.T.U.’s go into producing fertilizer, running tractors and, not least, transporting farm products to consumers. With oil persistently above $100 per barrel, energy costs have become a major factor driving up agricultural costs.
High oil prices, by the way, also have a lot to do with the growth of China and other emerging economies. Directly and indirectly, these rising economic powers are competing with the rest of us for scarce resources, including oil and farmland, driving up prices for raw materials of all sorts.
Third, there has been a run of bad weather in key growing areas. In particular, Australia, normally the world’s second-largest wheat exporter, has been suffering from an epic drought.
(...)
Where the effects of bad policy are clearest, however, is in the rise of demon ethanol and other biofuels.
The subsidized conversion of crops into fuel was supposed to promote energy independence and help limit global warming. But this promise was, as Time magazine bluntly put it, a “scam.”
This is especially true of corn ethanol: even on optimistic estimates, producing a gallon of ethanol from corn uses most of the energy the gallon contains (...).
And meanwhile, land used to grow biofuel feedstock is land not available to grow food, so subsidies to biofuels are a major factor in the food crisis. You might put it this way: people are starving in Africa so that American politicians can court votes in farm states.
(...)A respeito dos biocombustiveis (ou, mais exactamente, dos subsídios aos biocombustiveis) a minha opinião é que, se o consumo do produto X tem
externalidades negativas, a solução não é subsidiar produtos alternativos ao produto X - é mesmo cobrar impostos sobre o produto X (p.ex., se se conclui que temos que consumir menos gasolina, a solução é aumentar os impostos sobre a gasolina, não subsidiar o etanol; é verdade que atribuir subsídios é mais simpático que cobrar impostos, mas cada euro ou dólar de subsidio atribuido é um euro ou dólar de imposto que vai ter que ser cobrado algures). É verdade que isso iria à mesma fazer subir o procura por biocombustiveis, mas menos.