Does cellulosic ethanol require a subsidy to be competitive?
Governments worldwide have policy initiatives to reduce gasoline consumption. Vehicle efficiency targets and gasoline taxes are among the many policy tools used to decrease gasoline usage. Without the distortions of the tax system, cellulosic ethanol is one of the lowest cost ways to reduce gasoline usage. If governments are committed to reducing gasoline usage, consumer costs will be the lowest if clean fuel solutions like cellulosic ethanol do not face distortive and punitive gasoline taxes.
