Encouraging government to increase such subsidies

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The argument for giving subsidies to ethanol producers rests upon the assumption that ethanol results in lower CO2 emissions than gasoline, and therefore benefits the environment. If we accept that global warming is itself a serious problem, should we not be encouraging government to increase such subsidies? What are the arguments for and against doing so? On balance, what do you think is the best policy?

Reference no: EM13516036

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