Giving an Inch and Keeping a Mile: Why the Corn Lobby Let the Ethanol Tax Credit Expire

Smith, Aaron

from ARE Update Vol. 15, No. 5, May/Jun, 2012

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Abstract

Ten percent of motor gasoline in the United States is comprised of ethanol produced from corn. This production level is required by law, a requirement that confers large benefits on corn producers by keeping corn demand and prices high. In comparison, the recently expired ethanol tax credit was a small perk.

Keywords

Corn prices, ethanol, VEETC, RFS, renewable fuel standard

Citation

Smith, Aaron. "Giving an Inch and Keeping a Mile: Why the Corn Lobby Let the Ethanol Tax Credit Expire." ARE Update 15(5)(2012):1-4. University of California Giannini Foundation of Agricultural Economics.
http://giannini.ucop.edu/publications/are-update/issues/2012/15/5/giving-inch-and-keeping-m/