While New York’s Mayor Michael Bloomberg was busy unveiling a package of measures aimed at making NYC green (including reducing CO2 emissions by 30% by 2030), the state’s Governor, Eliot Spitzer, was making his reservations about corn ethanol known, as reported in the Globe & Mail. This adds yet one more (powerful) voice to the chorus of those skeptical about the viability of the corn ethanol industry. The article also notes that Dr. Dan Kammen, an influential Berkeley academic and advisor on climate change to California Governor Arnold Schwarzenegger, is also among those who doubt that corn ethanol is the best route to follow to deal with climate change. This likely means that at least one of Arnie’s advisors on the politically-sensitive issue of climate change is advising caution on corn ethanol. Finally, the article recognizes that even powerful foes in high places might not be able to curtail the progression of the “ethanol juggernaut”. Corn ethanol is a classic case of an investment story where one could be labeled as preferring “to be right rather than rich”. As far as I go, I see enough red flags to convince me that there is something fundamentally flawed here. But I would definitely be interested to hear more from the “other side”. In the meanwhile, I prefer to put my limited supply of money behind things that look fundamentally stronger.
