Status of the U.S. ethanol market
1985
Gill, M. | Allen, E.
Extract: Alcohol fuel production capacity has expanded rapidly due to Federal and State incentives to encourage production from domestically abundant renewable resources. Corn, which can be converted into ethanol, has emerged as the premier source for the foreseeable future. With the EPA phasedown of the use of lead in gasoline, demand has surged for ethanol as an octane-enhancer. Ethanol is competitive with other octane-boosters only because of Federal and State production incentives. Limited production capacity and the long lead time required to install new capacity, will make it difficult for the domestic industry to meet accelerated demand for ethanol. Because imports, especially from Brazil, are an increasing source of U.S. supplies, domestic producers have filed an anti-dumping case, alleging that Brazilian production is heavily subsidized.
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