Costs and Benefits to Taxpayers, Consumers, and Producers from U.S. Ethanol Policies
by Bruce A. Babcock, Kanlaya J. Barr, Miguel Carriquiry (Center for Agriculture and Rural Development, Iowa State University) The U.S. ethanol industry is lobbying hard for an extension of existing ethanol import tariffs and blenders tax credits before they expire at the end of 2010. The purpose of this study is to examine the likely consequences on the U.S. ethanol industry, corn producers, taxpayers, fuel blenders, and fuel consumers if current policy is not extended.
…Elimination of the tax credit would impact markets modestly, with ethanol production declining by an average of about 700 million gallons. This reduction in ethanol production would cause corn prices to drop by an average of 23 cents per bushel. Ethanol prices would drop by 12 cents per gallon.
Elimination of the tax credit would shift the burden of meeting mandates from taxpayers to blenders and consumers. READ MORE Download Study
Related posts:
- Questions About Biofuels’ Environmental Costs Could Alter Europe’s Policies
- Government Earns 400% ROI on Ethanol Blender’s Credit
- Economists Duke It Out Over Ethanol’s Benefits, Impact of Loss of Ethanol Tax Credits
- Benefits of Sugarcane Ethanol to Hit U.S. Airwaves in New TV Ads during ‘Indy 500’ Telecast on ABC
- Ethanol and the Oil Spill
