According to a paper by
Earth Track, Inc.,
2067 Massachusetts Ave., 4th Floor,
Cambridge 02140, MA, USA
Abstract: Hundreds of government subsidies have fuelled the growth
of ethanol and biodiesel in the USA, worth half or more their retail price.
Cumulative costs under some mandate proposals exceed $1 trillion by 2030.
Even using favourable assumptions, reduced greenhouse gas emissions from
biofuels are far more expensive than other options: more than $100/mt CO2e
even for cellulosic ethanol and nearly $300/mt CO2e for corn-based fuel.
Despite rising concerns, environmental screens in existing subsidy policies
remain weak or non-existent. A platform- and fuel-neutral policy structure
forcing all alternatives to conventional fuels to compete for market share
should be deployed instead.
Reference to this paper should be made as follows: Koplow, D. (2009)
‘State and federal subsidies to biofuels: magnitude and options for redirection’,
Int. J. Biotechnology, Vol. 11, Nos. 1/2, pp.92–126.
Biographical notes: Doug Koplow is the Founder of Earth Track, Inc.
(Cambridge, MA), established to provide greater transparency on government
subsidies to environmentally harmful activities. He has worked on energy
subsidy issues for the past 20 years, including a number of detailed assessments
of subsidies to biofuels in the USA.
This along with the $.45 per gallon subsidy to blend the alcohol with the gasoline for reduced mileage is made by the US Government through taxes that are out of your pocket. With the above article this means that if gasoline is at $4.00 per gallon, you are paying $8.00 per gallon for the alcohol addition but because it is from government subsidies you can’t really see it.