Could a variable ethanol blender's tax credit work?

Scott H. Irwin, Darell L. Good, Mindy L. Mallory

Research output: Contribution to journalArticlepeer-review


The purpose of this article is to analyze how a variable corn-based ethanol blender's credit might work in comparison with the current fixed per gallon credit. We first review some specifics regarding the current fixed-credit policy and then discuss basic issues pertaining to a variable credit policy. We follow this with a comparison of the historical performance of two variable blending policies, namely one that is based on crude oil prices and one that is based on ethanol-blending margins. A comparison of a variable credit and the present fixed rate policy shows that a variable tax credit can achieve program savings, by providing incentives to the ethanol industry only when it would experience losses without support from the tax credit.

Original languageEnglish (US)
Pages (from-to)277-284
Number of pages8
Issue number3
StatePublished - May 2011

ASJC Scopus subject areas

  • Renewable Energy, Sustainability and the Environment
  • Waste Management and Disposal


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