California clean air legislation questions corn-based ethanol.

The Food & Fiber Letter | May 18, 2009 | Copyright

Corn-based ethanol may not affect the price of food as much as thought, but a controversial decision in California questions its ability to curb greenhouse gas emissions from transportation.

A new report by the Congressional Budget Office entitled "The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions" concluded that increased use of the fuel did not contribute as much as expected to last year's rise in corn prices.

From April 2007 to April 2008 ethanol affected rising food costs to a smaller degree than had previously been anticipated. ...

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