Free Market Principles Missing in Ethanol Rule Changes: New at Reason

A few weeks ago, the Trump administration asked the Environmental Protection Agency to end its prohibition on the sale of E15—fuel that is 85 percent gasoline and 15 percent ethanol—during summer months, when the pollution from evaporative emissions is highest. The limitation was imposed to meet requirements under the Clean Air Act, though it allows for standards to be waived under certain circumstances, which the White House wants to utilize.

Some are hailing the move as a form of energy deregulation. Accepting this view, however, writes Veronique de Rugy, ignores why ethanol is blended with gasoline in the first place. Namely, the government demands it. Yet that isn’t stopping the administration from touting the new rule as “providing consumer choice” and “propping up the free market.” Something is being propped up, all right, but it’s not a free market.

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