A new study by Iowa State Economists looking at the impact of ethanol mandates on fuel prices shows those mandates don’t raise prices. It refutes administration fears that higher prices for ethanol trading credits will cause higher gas prices and ethanol mandates should therefore be reduced. Renewable Fuel Association’s Senior Vice President Geoff Cooper says it shows the oil industry is off base in attacking the RFS.
Cooper says the economists study also shows the effect of large corn crops have more of an effect on gasoline prices than on ethanol prices.
Cooper says the study says that one cent per gallon would be the impact on gas prices if the mandate were moved from 13.7 billion gallons to 14.2 billion or more gallons of ethanol.