MIT and UC Davis Scholars Agree: Ethanol Hasn’t Made Gasoline Cheaper

Back in May, we posted a critique of a Center for Agricultural and Rural Development (CARD) study that purported to show how ethanol mandates and subsidies had held down gasoline prices for American motorists.

We pointed out that despite its fancy bells and regression analysis, the study—which was touted by the Renewable Fuels Association (RFA) and other pro-ethanol groups—was based on a simple mistake: It assumed that the conventional refining sector would be exactly the same, with or without government support of ethanol, and therefore “concluded” that there would be a lot less refined fuel for Americans if all of the ethanol suddenly disappeared.

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One response to “MIT and UC Davis Scholars Agree: Ethanol Hasn’t Made Gasoline Cheaper

  1. It takes 1.3 gallons of fossil fuel equivalent to produce 1 gallon of ethanol. Not likly to reduce the cost of gasoline.

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