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The government subsidizes ethanol production by providing tax credits or direct payments to ethanol producers, supporting research and development for ethanol technology, and mandating blending requirements for ethanol in gasoline to create demand for the product.

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1y ago

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Why is super unleaded gas in Iowa cheaper than unleaded 87?

Because it has Ethanol in it. The Ethanol increases the octane and lowers the price.AnswerBecause it has ethanol in it. Ethanol actually decreases the power of gasoline, and subsequently decreases mileage as well. Interestingly, it also makes gasoline more expensive- BUT - this is Iowa, and the government is subsidizing the addition of ethanol to gasoline. In Missouri, where the government does not subsidize, gasoline with ethanol is MORE expensive than its Iowa Counterpart. Long story short, its cheaper because of government subsidies.


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The government subsidizes, or pays for a portion of, public school lunches - making them cheaper.


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In Bolivia, the government currently subsidizes gasoline and bread.


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Banks and airlines were allowed to suffer huge losses with the assurance that the government would cover their debt.


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Excessive government expenditures that subsidize failing or corrupt businesses are not always in the public interest.


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Because the US government insists on creating wars and supporting countries that we can no longer afford to subsidize.