Re: More Ethanol Into Gasoline
Especially when you are using corn rather than some other higher yield biomass. Hence the tariff's & lobbying for price supports and subsidies. That is where a 15% mandate will take us. I don't know about in your area, but in Oklahoma we still have the choice to buy 100% gas over the 10% E-blend, and stations have large banners promoting 100% Gasoline. Given the choice I don't think people are willing to migrate to the 15% E-blend. Eventually they will mandate a 15% or higher fuel and the Ethanol industry will complain that they cannot compete as long as gasoline is relatively cheap. Tariffs & Subsidies help, but they will eventually tax gasoline more like Europe so that ethanol is economically attractive at the expense or higher gasoline prices. And in times of budget shortfalls gasoline is easy money. We use over 9 million barrels of gasoline per day. At $0.4/gal in taxes that works out to over $150 million per day or $55 billion per year.
Doug
Except that ethanol costs considerably more to produce than petroleum based fuels.
Doug
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