Posted on February 17, by Scott Alexander I got many good responses to my Considerations On Cost Disease post, both in the comments and elsewhere. A lot of people thought the explanation was obvious; unfortunately, they all disagreed on what the obvious explanation was. Below are some of the responses I found most interesting.
Coincidentally, I recently visited Indianapolis and had noticed a large billboard advertising ethanol free gasoline. There are about ten million flex fuel cars on the road designed to burn E Why is ethanol-free gasoline so much more popular than E85?
I poked around in comment fields to come up with a short list of reasons, some rational, some not so much. Many consumers realize that E85 reduces gas mileage, but this is largely irrelevant when E85 is cheap enough to make up the difference.
Others fear that gasoline with ten percent ethanol might harm their car. This is a rational concern only for owners of older cars.
Using food stock to produce car fuel increases the cost of basic food staples like corn meal and eggs, which impacts the poorest of the world far more than it does the richest. When farmers plant corn instead of some other crop it causes a dominoe effect where farmers in other parts of the world create farmland to plant the crops replaced by corn.
Yet others buy ethanol free gasoline as a way to protest government mandated consumption of what they believe is an inferior product. Although I am unaware of any environmental organization that supports corn ethanol, some states have made it illegal to sell ethanol free gasoline.
As part of writing this article, I discovered that there are two gas stations serving ethanol free gasoline within a few miles of where I live.
By CharliePeters on September 4, at 7: The California Government regulators say we use about 14billion gallons of fuel per year. Does California use gallons of water to grow corn to produce 1 gallon of GMO corn fuel ethanol?
Does California water providers check for ethanol in the supply water for public consumption? They can enter the market with utilization of bio-digestor hardware. Your fuels costs mostly dependent upon regulations.
By Robert Frye on September 4, at 9: How is this person making the proper decision based on the most cost effective selection of BTUs to get the maximum mileage at the lowest cost?
I kept track of my mileage across several blends and now know I can run E30 in my car and get the same mileage as when I run E By Robert Frye on September 5, at 9: Respectfully -rdf [link] By Alex Johnson on September 5, at 3: Its a 4 cylinder and non-flex fuel.
I just passedmiles with it with no problems. By Russ Finley on September 5, at Good luck with that. Every study points to consumers using more ethanol if given access, choice, and cost benefits. Gas stations with these types of pumps have experience with increasing customers.
These pumps drive sales. Additional benefit to motoring public the pumps encourage competition. Ethanol processors are more competitive staying out of the petrol supply chain as these folks set the price and control the supply.
If the ethanol processors can transport their product directly to retail, we achieve maximum separation of competitive forces. The pump blends fuel content of ethanol per customer desires.
Even states like Missouri, which has a mandate, also allows E0. Minnesota is the same. There is no additional cost for a flex-fuel vehicle FFV for the consumer. If you have used it, you would know this to be true.
Every automaker since has endorsed and warranted the use of E10 in their vehicles. Believe the people that manufactured your vehicle, not someone that blogs. The market price of corn has returned to below production cost simple research to do before writing an article.
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