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Earlier this week, the Renewable Fuels Association released a report arguing that the Renewable Fuel Standard (RFS) is only slightly raising gasoline prices. The implication of the report is clear—there is no need for RFS. If the RFS has positive benefits, as the report claims, or only slight costs, then there is no need […]
Back in May, we posted a critique of a Center for Agricultural and Rural Development (CARD) study that purported to show how ethanol mandates and subsidies had held down gasoline prices for American motorists. We pointed out that despite its fancy bells and regression analysis, the study—which was touted by the Renewable Fuels Association […]
The Renewable Fuels Association (RFA) is touting a new study claiming that ethanol reduced gasoline prices by more than a dollar per gallon in 2011. As with similar studies in the past, the methodology used here to calculate this number rests on a basic fallacy in how they frame the question, which we’ll explain below. […]
The federal mandate to blend corn-based ethanol into the U.S. vehicle fuel mix is an economically absurd practice. On a level playing field, conventional gasoline would be used for the foreseeable future, as it is the most efficient method (all things considered) to deliver energy to U.S. vehicles. At most ethanol would have a […]
The National Academy of Sciences (NAS) released a report in 2011 on the feasibility of meeting the Renewable Fuel Standard (RFS) passed during the Bush administration. To no one’s surprise, the NAS found that the United States could not meet the mandated 2022 biofuels targets for cellulosic ethanol without unexpected technological breakthroughs. The Energy Information […]
A USAToday story on the expiration of federal government support of domestic corn ethanol demonstrates the media’s ability to shape a story while appearing to be objective. The reporter technically includes both sides of the story, but trumpets one side so that the average reader would be outraged at the policy change. In reality, federal government […]