Biofuels – Snake Oil for the Twenty-First Century

Abstract:     
Biofuels made from corn or soy beans are heavily subsidized by Federal and state governments based on claims that their use improves environmental quality and reduces the U.S. dependency on foreign oil supplies. This article refutes these claims and documents how the farm lobby aided by money from ethanol producers results in numerous subsidies that cost the American taxpayer more than $6 billion a year with costs projected to triple by 2022.

Number of Pages in PDF File: 76

Keywords: biofuels, ethanol, biodiesel, alternative fuels

JEL Classification: A13, K32, K34. L51, L52, N50, Q18, Q20, Q42, R58

Accepted Paper Series