US Biofuel Policies Could Destabilize Global Ethanol Market, Study Finds.
The United States is producing a lot of ethanol, but can't use it all domestically due to vehicle limitations. This excess ethanol is being exported to the world market. U.S. biofuel policies, like the Renewable Fuel Standard and blender tax credits, are affecting the global ethanol market. Fluctuations in corn yield and gasoline prices also play a role. The study used simulations to see how these factors impact the amount of ethanol exported. The results show that U.S. biofuel policies and technological constraints can lead to unstable international markets.