Data from Minnesota show that the cost of building a
dry-milling plant producing ethanol is, on average, about
0.5 $1 -~ annual production capacity. The annual federal and
state subsidies for small-scale ethanol plants in Minnesota in
1996 amount to 20 $ cents 1-1, whereas the ethanol price in
the 1990s has been around 0.35 $1 -~ (Fruin et al., 1996).
These data clearly illustrate the political economy of ethanol
production, bioethanol is not competitive without substantial
subsidies (see also Gardner, 1996 and Vollebergh, 1997 this
volume).
The Brazilian situation might be an exception. Goldemberg
et al. (1993) shows that ethanol could be produced in
1990 in Brazil at a cost of 0.20 $1 -~. This figure was considered
by the authors to be competitive with gasoline prices. From
Data from Minnesota show that the cost of building adry-milling plant producing ethanol is, on average, about0.5 $1 -~ annual production capacity. The annual federal andstate subsidies for small-scale ethanol plants in Minnesota in1996 amount to 20 $ cents 1-1, whereas the ethanol price inthe 1990s has been around 0.35 $1 -~ (Fruin et al., 1996).These data clearly illustrate the political economy of ethanolproduction, bioethanol is not competitive without substantialsubsidies (see also Gardner, 1996 and Vollebergh, 1997 thisvolume).The Brazilian situation might be an exception. Goldemberget al. (1993) shows that ethanol could be produced in1990 in Brazil at a cost of 0.20 $1 -~. This figure was consideredby the authors to be competitive with gasoline prices. From
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Data from Minnesota show that the cost of building a
dry-milling plant producing ethanol is, on average, about
0.5 $1 -~ annual production capacity. The annual federal and
state subsidies for small-scale ethanol plants in Minnesota in
1996 amount to 20 $ cents 1-1, whereas the ethanol price in
the 1990s has been around 0.35 $1 -~ (Fruin et al., 1996).
These data clearly illustrate the political economy of ethanol
production, bioethanol is not competitive without substantial
subsidies (see also Gardner, 1996 and Vollebergh, 1997 this
volume).
The Brazilian situation might be an exception. Goldemberg
et al. (1993) shows that ethanol could be produced in
1990 in Brazil at a cost of 0.20 $1 -~. This figure was considered
by the authors to be competitive with gasoline prices. From
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Data from Minnesota show that the cost of building a
dry-milling plant producing ethanol, average is on, 0.5 about
$1 - ~. Annual production capacity. The annual federal and
state subsidies for small-scale ethanol plants in Minnesota in
1996 amount. To 20 $cents 1-1 whereas the, ethanol price in
the 1990s has been around 0.35 $1 - ~ (Fruin et al, 1996).
.These data clearly illustrate the political economy of ethanol
production bioethanol is, not competitive without substantial
subsidies. (see also Gardner 1996 Vollebergh 1997, and, this
volume).
The Brazilian situation might be an exception. Goldemberg
et. Al. (1993) shows that ethanol could be produced in
1990 in Brazil at a cost of 0.20 $1 - ~. This figure was considered
.By the authors to be competitive with gasoline prices. From.
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