Government Policy and Ethanol: What Does the Future Hold?
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The worlds of government and agribusiness have become intertwined with the increase in ethanol production that has occurred over the last decade. With tariffs and subsidies, the question regarding ethanolbecomes whether these initiatives are needed. This paper investigates whether the government policies of the $0.54 per gallon tax on imported ethanol and the $0.45 ethanol blender tax credit are still needed.