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Should Governments Subsidize Ethanol?
Governments shouldn't subsidize ethanol.
The environmental benefits are uncertain.
Using food grains for ethanol production causes
global food prices to increase.
run better with fewer problems on gasoline unmixed with ethanol.
Burning ethanol reduces gas mileage, leading to more fuel consumption and higher costs.
Government involvement in markets causes
market distortions and rent seeking.
for what taxpayers receive in return.
Ethanol helps gasoline burn cleaner.
Ethanol subsidies create jobs.
Bioethanol is in principle a
renewable energy source
, as long as sustainable methods are used to produce the biomass used.
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