In December 2010, one of the U.S. legislation has been largely ignored in the popular press: one-year extension of the 45 cents per gallon Volumetric Ethanol Excise Tax Credit (VEETC), commonly known as a "credit Blender." Both supporters and opponents of the blender credit was fond of quoting the data to support their position. Supporters point to the number of jobs created by new ethanol plants, while opponents cited unfavorable energy balances using ethanol and general budgetary impact of the credit Blender. What was less clear, but potentially much more important than the selective data given by proponents and critics of ethanol was the overall impact of the credit blender on the U.S. economy. In particular, the extent to which ethanol subsidies, affecting the distribution of resources in the ethanol market to act as a drag on the performance of the U.S. economy? This case is the story of the U.S. ethanol market review and ethanol-based motor fuel, including data on supply and demand fundamentals. It also discusses the broad U.S. energy market, as well as on the U.S. grain market. The case examines other policies, in addition to ethanol tax credit, which have an impact on the market-based ethanol motor fuel, such as tariffs and mandates. Finally, it examines the ways of other countries, such as Brazil, supported the use of ethanol-based fuel. "Hide
by David Besanko, Melissa Ulan Source: Kellogg School Management 36 pages. Publication Date: January 1, 2011. Prod. #: KEL523-PDF-ENG
