Supporters of continuing ethanol subsidies are once again using a study out of Iowa State to bolster their case, and once again, it doesn’t.  This year’s study, “The Impact of Ethanol Production on U.S. and Regional Gasoline Markets: An Update to 2012,” is an update to their previous work. In reviewing that work, here’s what the Institute for Energy Research concluded:

"The recent Iowa State study claiming that ethanol production has suppressed the growth in gasoline prices is very misleading. It takes for granted the current refinery capacity and other infrastructure that industry uses to deliver gasoline to motorists, without realizing that federal policies over the years have distorted the development of these markets. Ethanol only survives in the market place at its current leve... more »