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Markets, not mandates, shape ethanol production

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  • Nathan Kauffman

Abstract

The 2012 drought has reignited the food versus fuel debate. After cutting U.S. corn production below recent years? consumption, the drought sparked a U.S. grain shortage and sent global food prices soaring. As the grain shortage intensified, pressure to relieve the shortage by easing ethanol mandates mounted.

Suggested Citation

  • Nathan Kauffman, 2012. "Markets, not mandates, shape ethanol production," Main Street Economist, Federal Reserve Bank of Kansas City, issue 5.
    • Handle: RePEc:fip:fedkms:y:2012:n:5
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    File URL: http://www.kansascityfed.org/publicat/mse/MSE_0512.pdf
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