Does the Renewable Fuel Standard Raise Food Prices?

The Renewable Fuel Standard (RFS), which was recently amended to address numerous criticisms, is again under fire, this time for its potential effect on food prices. The RFS program requires an increasing volume of renewable fuel to be blended into transportation fuel each year and since its implementation in 2005, the US has become the world’s largest producer of ethanol fuel, a corn-based renewable fuel. Yet many RFS critics argue that the mandate is responsible for driving up food prices. The authors of this UC Davis study concluded that “Corn prices were about 30 percent greater between 2006 and 2011… [more]