The U.S. government’s Renewable Fuels Standard represents a cost to consumers exceeding $5B per year, according to an analysis of current biofuels policy with specific reference to tax credits by Bruce A. Babcock, professor of economics at Iowa State University and the director of the school’s Center for Agricultural and Rural Development.

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Federal subsidies include a fuel blenders’ credit of 45 cents per gallon for biofuels incorporated into gasoline and a protective tariff on imported ethanol of 54 cents per gallon.