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To: Cogito Ergo Sum who wrote (1383)6/19/2008 7:13:27 PM
From: patron_anejo_por_favor  Respond to of 4448
 
That was my point....if yer GM and you have flex-fuel cars, why not get the ball rolling (since they're dead as fried chicken if they don't change something soon anyway). Start near the gulf coast, install some E85 fuel stations and market yer car as the low cost fuel burning alternative. The government shoulda never got involved in the first place, let the markets work!

Alternatively, push E10, all of the time, nationwide. Remove tariff and mandate, compete on price alone.



To: Cogito Ergo Sum who wrote (1383)6/19/2008 7:24:52 PM
From: Snowshoe  Respond to of 4448
 
We could see a gradual reduction of the ethanol tariff, along with the subsidy...

Lawmakers look to reduce ethanol tariff
meatnews.com

If so, it makes sense to also cut the mandate and let market forces determine where ethanol is sold. Perhaps we'll develop some regional variations in US transportation. I could see Brazilian ethanol becoming highly competitive with gasoline on the US east cost.

Meanwhile, southwestern states like California/Arizona could shift emphasis toward electric cars. There are two good reasons for going electric in places like California. One is the potential for cheap solar power, and the other is air pollution. Somewhere I saw a study suggesting that the ethanol mandate worsens air pollution in California.

So, let's suppose that Brazilian ethanol gradually does penetrate the US east coast urban markets. Is Cosan a good investment? What about competition from other Brazilian ethanol producers? I guess I should take a closer look.