The Organization for Economic Cooperation and Development recently released a study, "Economic Assessment of Biofuel Support Policies," that estimates the potential worldwide impact of removing all governmental support for biofuels production and use. The report offers a number of recommendations, including a call on world governments to remove tariffs on biofuels and to consider "alternative policy approaches."
 

 However, an analysis of the report finds that the data generated do not support the conclusions or policy recommendations made by the OECD. Nor do the data support OECD officials' calls for a moratorium on biofuels. Rather, the data support the conclusions that biofuels policies are having a minimal impact on food prices and result in reducing 
 greenhouse gas emissions.
 
 The OECD credits ethanol produced from corn starch with a 30 percent reduction in greenhouse gas emissions if using natural gas, and a 50 percent reduction if the facility is biomass-powered. Based on this finding, a moratorium is unwarranted. 
 
 In addition, the modeling included in the report suggests that a 28 percent drop in world oil prices would cause a 12 percent reduction in world coarse grain prices, underscoring the fact that skyrocketing oil prices are the largest driver behind increasing grain prices. By contrast, removing biofuels mandates such as the renewable fuels standard would reduce coarse grain prices by just 1 percent.
 
 More information on the report is available at <a href="http://www.ethanolrfa.org">www.ethanolrfa.org</a>.

Review of OECD biofuels report confirms significance of oil prices

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