According to a paper by

Doug Koplow

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.

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