Ethanol Production: Government Sends a Mixed Message

Two years ago, the U.S. Congress mandated a huge increase in ethanol use that took corn production to new highs and provided enormous incentives to invest in ethanol production. At the same time, lawmakers directed the EPA to show that ethanol would produce less pollution linked to global warming than would gasoline.

In the last month, the government sent the ethanol producers a mixed message that could turn the industry on its ear.

On May…

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