Monday, April 04, 2016

Ethanol Mandates Need to Go

Ethanol Mandates Need to Go | Economics21
Burning food for fuel does not sound like the best idea. 
However, that is precisely what U.S. ethanol policy requires.
Though federal supports for ethanol have changed over the past decades, the disappointing results of the program—including the waste of motorists’ dollars—have continued. In what follows, my Manhattan Institute colleague Robert Bryce explains why Americans are still stuck with destructive ethanol programs that do not help the environment, promote energy independence, or aid the economy:
...More importantly, thanks to Congress, we have a federal mandate that requires retailers to blend about 13 billion gallons of corn ethanol per year into the gasoline they sell to the public. 
That mandate is just another form of subsidy because it requires motorists to buy a fuel that, on an energy-equivalent basis costs more than conventional gasoline.
Making matters worse, ethanol is corrosive, hydrophilic (meaning it absorbs water), and it’s bad for small engines.
Regarding that last point, I am compelled to add a personal anecdote.
I have a small (4 horsepower) outboard engine that I use on my old wooden boat.
A few weeks ago, I had it serviced.
As I handed it over, I asked the mechanic (James, the owner of Highland Outboards) how many of the engines he works on have been damaged by ethanol.
His reply: “all of them.”
Lots here.
Read on!

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