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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Peter Dierks who wrote (41086)9/9/2005 4:19:00 AM
From: Elroy JetsonRead Replies (1) of 306849
 
Ethanol does contain less energy than gasoline but that is not why its used.

Ethanol is the least expensive additive to add octane (retard premature ignition in high compression engines) and add oxygenation for clean burning.

If all ethanol subsidies were replace with a 40% tax on ethanol, refiners would still use ethanol to raise octane and meet clean air requirements calling for oxygenated gasoline.
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