Some Biofuel Common Sense

Here's a link to an interesting blog piece on biofuels, specifically ethanol. Conflict of interest alert: I am an investor in an ethanol distribution business, so I am definitely interested in market news/forces that impact its uses.

One of the big hits that ethanol takes is the charge that the use of foodstuffs (mostly corn) raises food prices. Folks point to recent spikes in corn costs and say "see, there you have it". As the blog piece ably points out, those spikes were far more attributable to transport costs driven by OIL prices than they were by any demand issue driven by competition by ethanol distillers.

H/T Instapundit