BrianGarst.com

More unintended consequences from government interventionism in the market, via WaPo:

…In a matter of months, the Biomass Crop Assistance Program — a small provision tucked into the 2008 farm bill — has mushroomed into a half-a-billion dollar subsidy that is funneling taxpayer dollars to sawmills and lumber wholesalers, encouraging them to sell their waste to be converted into high-tech biofuels. In doing so, it is shutting off the supply of cheap timber byproducts to the nation’s composite wood manufacturers, who make panels for home entertainment centers and kitchen cabinets.While it remains unclear whether Congress or the Obama administration will push to revamp the program, even some businesses that should benefit from the subsidy are beginning to question its value.

“It’s not right. It’s not serving any purpose,” said Bob Jordan, president of Jordan Lumber & Supply in North Carolina, even while noting that he might be able to get twice as much money for his mill’s sawdust and shavings under the program.

“The best thing they could do is forget about it. All it’s doing is driving the price of wood up.”

…

Subsidies, by their very nature, distort markets.  While this specific outcome may or may have not been foreseeable, that there would have been some destruction by forcing a good to be used for a different purpose than the market generally allocates it should have been obvious.

But don’t count on government deciding to “forget about it,” despite the damaging evidence.  The deep-seated desire of some to save civilization by promoting “green technology” is based on a near-religious fanaticism in support of AGW.  If it hasn’t been shaken by ClimateGate and today’s global cooling, a little economics isn’t going to do it either.  The only hope is to vote them all out.

Global Warming subsidies