Please create an account to participate in the Slashdot moderation system

 



Forgot your password?
typodupeerror
Get HideMyAss! VPN, PC Mag's Top 10 VPNs of 2016 for 55% off for a Limited Time ×
Power

Submission + - Ethanol's Redundant Subsidy (theoildrum.com)

Gooseygoose writes:

Even if you are a staunch proponent of U.S. biofuel policy, it is hard to argue that the current subsidy on grain ethanol serves the purpose it was designed to serve. Further, it does not help ethanol producers compete against oil companies. Why? Because we now have mandates. As I will explain here, this nullifies the purpose of the subsidy.

But first, how did we get to this point? In an effort to spur development of a domestic renewable fuel industry and wean the U.S. off of foreign oil, the U.S. government introduced tax credits for ethanol usage with the Energy Tax Act of 1978. The tax credit was an exemption to the Federal Excise Tax on gasoline, and amounted to $0.40 for every gallon of ethanol blended into gasoline at the 10% level (increased to $0.60 per gallon in 1984 and gradually decreased to the current level of $0.45 per gallon).

http://www.theoildrum.com/node/6225

This discussion was created for logged-in users only, but now has been archived. No new comments can be posted.

Ethanol's Redundant Subsidy

Comments Filter:

Retirement means that when someone says "Have a nice day", you actually have a shot at it.

Working...