Gasohol hangover

Journal Article · Sun Nov 01 00:00:00 EST 1981 · Regulation; (United States)

OSTI ID:5813975

Two studies indicate that the Energy Security Act of 1980 gasohol program may have overshot its target. A Brookings Institute study finds that subsidies are driving up food prices, while a Harvard study questions whether gasohol can displace imported oil use by 10%. Financial incentives for ethanol include exemption from the federal gasoline tax and a 10% investment tax credit, but the Reagan administration is eliminating or curtailing many grants, loans, and loan guarantees. The total incentive package is a minimum of 43 cents per gallon of ethanol. Gasohol prices are not competitive even with these incentives, however, because production costs are a dollar per gallon higher and there is no convincing evidence as yet that gasohol improves car mileage. Increased gasohol production from improved technology could be offset by the higher cost of feed grains and the loss of foreign markets. (DCK)

• OSTI ID: 5813975
• Journal Information: Regulation; (United States), Journal Name: Regulation; (United States)
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
10 SYNTHETIC FUELS
GASOHOL
ENERGY POLICY
MARKET
COMPETITION
ECONOMICS
ETHANOL
FINANCIAL INCENTIVES
PRODUCTION
ALCOHOLS
FUELS
GOVERNMENT POLICIES
HYDROXY COMPOUNDS
LIQUID FUELS
ORGANIC COMPOUNDS
295000* - Energy Planning & Policy- Hydrogen & Synthetic Fuels
090200 - Alcohol Fuels- (-1989)