21 December 2007

Ethanol Sucks --- Again

This comes from the folks at AEI-Brookings (not exactly liberal cowards...)
Ethanol production in the United States has been steadily growing and is expected to continue growing. Many politicians see increased ethanol use as a way to promote environmental goals, such as reducing greenhouse gas emissions, and energy security goals. This paper provides the first thorough benefit-cost analysis of increasing ethanol use beyond four billion gallons a year, and finds that the costs of increased production are likely to exceed the benefits by about three billion dollars annually. It also suggests that earlier attempts aimed at promoting ethanol would have likely failed a benefit-cost test, and that Congress should consider repealing the ethanol tariff and tax credit.

2 comments:

  1. yeah, talk about being surprised that ethanol did not pass C-B test!

    AG

    ReplyDelete
  2. While that study dealt with ethanol blends, a study by RAND shows that E-85 also doesn't even pass a cost-benefit test from the point of view of the end user and society.

    http://www.rand.org/pubs/working_papers/2007/RAND_WR537.pdf

    AG

    ReplyDelete

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