Ideas to Action:

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Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

The Ethanol Link between Food and Energy Prices in Pictures

US government promotion of the ethanol industry is an important element in the recent spikes in corn (and other food) prices, but rising oil and gasoline prices are also key contributors.  This is the punch line of a recent presentation I gave on US biofuel policy, and a point that can be clearly illustrated in just two charts:  the first chart provides a crude summary of key elements of US biofuels policy; the second chart shows trends in ethanol production, corn prices, and crude oil prices all starting to move together in the mid-2000s.

“The United States Must Be a Leader in Development” -- Senator Richard Lugar

“No superpower that claims to possess the moral high ground can afford to relinquish its leadership in addressing global disease, hunger, and ignorance,” said former US senator Richard Lugar. “Our moral identity is an essential source of national power… We diminish ourselves and our national reputation if we turn our backs on the obvious plight of hundreds of millions of people who are living on less than a dollar a day and facing severe risk from hunger and disease.”