What is a consequence of using corn-based ethanol instead of petroleum oil?

Using corn-based ethanol as a substitute for petroleum oil can raise the price of food primarily due to the competition between food production and fuel production. When corn is diverted from food markets to produce ethanol, it can lead to a reduction in the overall supply of corn available for food. This change in demand can drive up the prices of corn and related food products, as resources are reallocated to support biofuel production rather than food supply.

Additionally, as farmers focus more on growing corn for ethanol, the prices for other crops may also be affected, further impacting food costs. This phenomenon highlights the interconnectedness of agricultural markets and energy markets, where demand for biofuels can create upward pressure on food prices, particularly in regions that are reliant on corn as a staple crop.

The other options may not accurately reflect the common economic outcomes related to the use of corn-based ethanol. For instance, while increased food availability or lower food prices may be desired outcomes, in practice, the emphasis on biofuel production has often led to the opposite effect—higher food prices due to supply constraints.