ethanol

Hillary Clinton and Donald Trump don’t agree on much, but they see eye-to-eye on the Renewable Fuel Standard. Too bad they’re both wrong.

Despite being a politically favored source of energy, Ethanol is not the right solution to our problems.

The Renewable Fuel Standard (RFS)—also known as the ethanol mandate—was passed by Congress in 2005 and expanded in 2007. Regardless of market conditions, it required ever-increasing quantities of biofuel be blended into the nation’s gasoline supply—though the Environmental Protection Agency (EPA) does have the flexibility to make some adjustments based on conditions, such as availability and infrastructure.

Too many presidential candidates court corporate cash by promoting ethanol.

The Department of Energy announced state revenue from severance taxes dropped as the price of crude oil falls below $30 per bushel. The following charts show tax revenue for 6 states.

The purpose of any economic exchange is to better one’s position, whether a person buys or sells something for money or barters for something else. This is the essence of free market capitalism, where all economic transactions are voluntary because they are of mutual benefit. They are all “win-win” situations in the minds of the participants.