Reply #16: Yeah, apparently he was wrong... it's higher [View All]

[OKIsItJustMe]

http://www.iisd.org/pdf/2007/biofuels_subsidies_us_update.pdf

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Executive summary

This report updates information on government support for fuel-grade ethanol and biodiesel1 in the United States, originally detailed in the 2006 study commissioned by the Global Subsidies Initiative (GSI) from Earth Track, Biofuels – At What Cost? Government Support for Ethanol and Biodiesel in the United States. The analysis reviews market developments over the past year, re-examining the policy environment at the federal level and updating subsidy values based on recent biofuel production and consumption information. State reductions in motor fuel taxes were also re-evaluated. Scores of other state and county subsidies continued to proliferate during the past year but were beyond the scope of this update. Readers should rely on the original report for historical information and more detailed descriptions of programs.

Biofuel subsidies expected to approach US$ 100 billion for the 2006–2012 period

Total government support for biofuels in the United States reached approximately $ 6.3–$ 7.7 billion in 2006, the majority of which was directed to ethanol (see table below). Total support is projected to reach around $ 13 billion in 2008 and almost $ 16 billion by 2014. Under existing policies, the industry will, in aggregate, obtain subsidies worth more than $ 92 billion over the 2006–2012 time frame. These estimates should be viewed as conservative, given that they do not incorporate many state subsidies now in effect nor the cost of a more stringent renewable fuels consumption mandate.

        Subsidies to ethanol and biodiesel 

                                   Ethanol                       ...
                      2006    2007     2008      2006–2012       ...
Total subsidies                                                  ...
($ billions/year)   5.8–7.0  6.9–8.4  9.2–11    Total 67–82      ...
                                                                 ...
Per gallon biofuel                                               ...
consumed ($ gallon) 1.1–1.3  1.1–1.3  1.1–1.3  Average 1.0–1.2   ...
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