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• 20 x payback? A 0.02 cent tax sounds almost reasonable - that only $200MM a month. I suppose you could look at it that way - especially if you live in Iowa.
  
  What this really saying, and isn't covered in this post at all, is that supply is too tight. There is a much smarter way to get that marginal 5% of supply that is attributed to ethanol at the cost of $200MM a month in taxpayer subsidies in this study - 1. stop buying oil for the strategic petroleum reserves at a cost of $250MM a month, 2. release about 1/5th of the SPR's daily release capacity into the market - which would generate about $100 per gallon in profit for the treasury - or at 800K per day about $2.4 Billion in net profit. It would acheive the same market effect as the ethanol... but we'd have money left over to fund continued subsidies for green technologies like solar without cutting Big Oil's tax subsidies... In reply to: "Is ethanol lowering prices at the pump for consumers?"

  May 20, 2008

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