Corn is king, but biofuels at crossroads.

• Position: The Environment - Brief article

The steady rise in ethanol consumption reduced U.S. demand for motor gasoline by an estimated five percent in 2008, and accounted for 20% of the increase in domestic corn prices, according to an assessment of biofuels by the Worldwatch Institute, Washington, D.C. Concerns over energy security and climate change, as well as a range of government incentives, fueled the production of an estimated 9,500,000,000 gallons of biofuels last year in the U.S. alone, a 39% increase over 2007.

"Biofuel production today can be more harmful than helpful," explains Jane Earley, coauthor of the report. "As a renewable energy source, bioenergy should continue to be seen as a promising part of a sustainable energy future, but we must begin the transition to second--and third-goneration biofuels immediately."

Studies suggest that the environmental costs associated with the current biofuel industry--including water pollution, wildlife habitat loss, and declining freshwater resources--likely outweigh the benefits. Claims about the climate change benefits of biofuels often are inflated, as many of these...