Friday, December 16, 2016

Advanced boifuel standard has problem with economics

The government, especially the liberal wing, likes to ignore economics.  For example, the government has mandated that the oil companies include advanced biofuels in gasoline.  We're not talking about good old "corn liquor" here, but alcohol made from other stuff, like grass. The amount of advanced biofuels required increases every year by government edict. The problem is that there isn't enough advanced biofuels available to meed the mandates, and now the government wants even more.

One problem with good old grain alcohol is that the amount of energy required to grow the corn make the stuff is so close to the amount that comes out that it isn't clear whether there is a net benefit or cost in terms of carbon footprint. If the politicians were honest, they would admit that the principle benefit of corn alcohol is that Iowa is the first step to the presidential nomination. Scott Walker lost my support for the nomination when he came out in favor of corn alcohol, despite his otherwise reasonable positions.

Each year, congress and the gasoline producers arm wrestle over the legal requirement. You just can't legislate economics, all you can do is tax it and make things more expensive.

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