With oil prices reaching all-time highs, and the price of gasoline rising to the point where people are beginning to change their daily driving habits, the call for alternatives to gasoline is becoming increasingly louder. The obvious choice is for a substitute for gasoline that burns in car engines and does not require extensive modifications or even replacement of the entire vehicle for one powered by, e.g., electricity. Ethanol has been the focus of US government energy policy. President Bush has proposed a four-fold increase in the production and use of alternative fuels in the USA. Many believe that this will lead to significant increases in the prices of food crops, as ethanol producers increase demand for corn (Graph A: price up & quantity up) and more farmers convert their crops to corn, in order to benefit from the higher prices, thereby reducing the amount of other crops that they "Corn is the main ingredient in ethanol, the primary alternative fuel in the United States and
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This note was uploaded on 10/30/2011 for the course MAN 6608 taught by Professor Sharonrogers during the Spring '11 term at FIU.