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Expert Insight

Big Changes to the Ethanol Landscape?


Date: January 5, 2012 at 8:21 AM

On December 31, 2011 Congress allowed a decades-old corn ethanol subsidy to sunset. It also sunsetted an import tariff on foreign cellulosic ethanol. The dissolution of these policies has prompted some concern about impacts on gasoline prices and the future of the U.S. ethanol industry. Nearly all gasoline blended and sold in the U.S. contains at least 10% corn ethanol. USA Today is reporting that the end of the subsidy could raise gasoline prices by as much as $0.045/gallon as early as next week. In an interview on NPR, Bruce Babcock, a professor of energy economics at Iowa State University,… [more]

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