The Ethanhol Program
Posted on: October 22, 2017 at 16:56:38 CT
ScottsdaleTiger MU
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Doesn't the federal ethanol program require the use of ethanhol in gasoline and nothing more. What this does is increase the demand for ethanol and its price.
At the time the program was established, there were concerns about energy security, i.e. the U.S. being dependent on foreign oil. The program was intended to reduce that dependence.
Dependence on foreign oil is no longer a concern largely because of fracking.
I understand that one argument for continuing the ethanol program is that is less pollution.
The industry is not a particularly attractive investment.
The presence of an ethanol plant in a community tends to slightly increase corn prices.