Ethanol Makes Gasoline Costlier, Dirtier
by Jerry Taylor and Peter Van Doren
http://www.cato.org
Ethanol is economically competitive now. According to a 2005 report issued by the Agriculture Department, corn ethanol costs an average of $2.53 to produce, or several times what it costs to produce a gallon of gasoline. Without the subsidies, costs would be higher still. A study last fall from the International Institute for Sustainable Development found that ethanol subsidies amount to $1.05-$1.38 per gallon, or 42 percent to 55 percent of ethanol's wholesale market price.
This article appeared in the Chicago Sun-Times on January 27, 2007.
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