The Myth of Ethanol

Consumer Reports’ article finds that government mandates to use ethanol and new E85 cars – intended to create “energy independence” – has instead increased consumption of gasoline. The main reasons are that E85 vehicles get worse mileage than standard vehicles, and the gasoline remains far cheaper (even with tax subsidies for ethanol producers), so that drivers of cars than can run on E85 continue to choose gasoline.

Additionally, NCPA finds that the recent drop in gas prices is no conspiracy but related to increased supply and investment and decreased demand due to conservation – both stemming from higher prices. It should be duly noted that while elected officials can’t be blamed based on conspiracy theories, they likewise cannot be credited for the recent drop in prices – it is a market phenomenon.