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Study Finds Government Mandates Superior to All Other Biofuels Policies, But Mixing With Subsidies Causes Adverse Effects; The Argument for a Direct CO2 Tax

Green Car Congress

Other findings from the study include: Ethanol policy can have a substantial impact on corn prices. The gap between the intercept of the ethanol supply curve and the oil price creates large deadweight costs that may overwhelm any external benefits. However, production costs of US corn-ethanol are very high.

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