Both proponents and adversaries of the credit of the blender liked to mention data to support their positions. Proponents pointed out the amount of jobs created by new ethanol plants, while adversaries mentioned negative energy equilibria from the usage of ethanol and also the total budgetary impact of the blender's credit. What was less clear-but potentially much more significant in relation to the particular data mentioned by advocates and critics of ethanol-was the complete effect of the blender's credit on the U.S. market. In particular, to what extent did the ethanol subsidy-by affecting the allocation of resources to the ethanol market-act as a drag on efficacy in the U.S. economy?
This case presents a history of ethanol in the U.S. and an overview of the market for ethanol-based motor fuel, including data on demand and supply fundamentals. Additionally, it discusses the more extensive U.S. energy market, as well as the U.S. market for corn. The case reviews other policy interventions besides the ethanol tax credit that have an impact available on the market for ethanol-based motor fuel, like tariffs and mandates. Eventually, it studies the ways other nations around the globe, for example Brazil, have supported the use of ethanol-based fuel.
Should the Ethanol Blender's Credit Be Eliminated case study solution
PUBLICATION DATE: January 01, 2011 PRODUCT #: KEL523-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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