Ethanol: Let Protectionism Expire | Harry de Gorter and Jerry Taylor | Cato Institute: Commentary

Ethanol: Let Protectionism Expire | Harry de Gorter and Jerry Taylor | Cato Institute: Commentary: "The ethanol tax credit alone costs taxpayers over $6 billion per year.

The expiration of these policies will have little, if any, impact on the U.S. ethanol industry, because the Renewable Fuel Standard requires Americans to consume an increasing amount of biofuels each year. The demand for ethanol will therefore not drop significantly even when the current tax credit (45 cents per gallon) and tariff (54 cents per gallon) expire. As a mandate, the standard acts as a built-in market for U.S. ethanol producers."