Ethanol, most likely, is not energy positive and is already subsidized improperly. Subsidies are intended to boost the market for a particular item. Ethanol has been doing relatively well in the markets the past few years. The problem with this is that if the market is doing well, the government shouldn’t be left to pay more to boost the market. It has little effect on the total market activity. Ethanol subsidies should be placed on a variable rate so that the amount subsidized by the government is inversely proportional to the relative prosperity of the particular market field. It is evident that corn ethanol should mostly be used for
Regardless of whether or not Ethanol is energy positive or not, Perdue University is putting a great deal of research into the impacts the ethanol industry is going to have on the state’s infrastructure. Studies include corn ethanol impacts on transportation and on livestock feed. The conclusions from Perdue University state that the ethanol industry simply cannot continue to grow without government incentives.