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Study recommends elimination of subsidies of ethanol in the U.S.

A study released yesterday (07/14) by the American Enterprise Institute recommends an end to U.S. subsidies of corn ethanol and trade barriers to Brazilian biofuel for considering these fruitless and expensive. Information is from Christopher Knittel, the business school at MIT (Massachusetts Institute of Technology).

In addition, the specialist examines if the social cost of biofuel production is even smaller and suggests ways to achieve the objectives of subsidies. For him, the country should encourage the use of sugarcane ethanol to reduce dependence on foreign oil, so it supports the lifting of tariffs.

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