Time to Repeal the Ethanol Mandate

The Heritage Foundation
May 15, 2008
by Ben Lieberman and Nick Loris
WebMemo #1925

Though intended to help consumers and reduce greenhouse gas emissions, the ethanol mandate has done just the opposite, contributing to high food and gas prices with little environmental benefit. Representative Jeff Flake (R–AZ) has introduced H.R. 5911, the Remove Incentives for Producing Ethanol Act of 2008, which would eliminate the mandate and other benefits for ethanol, and other measures may soon be introduced.

A return to a free market for ethanol would be a welcome step. Congress should eliminate the ethanol mandate, ethanol-related tax breaks, and protectionist tariffs that keep out potentially cheaper foreign supplies.

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