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E85 is only currently cheaper than gas because it is not taxed as heavily. give it some time and we can all watch it hit the same price per gallon. in terms of production cost it is only slightly more costly than fuel, that would cost would drop if production broadened some more.
ethonol still acts as more of a solvent that traditional gasoline and will shorten the service life of 95% of the engines currently operating on americas highways.
the gas companies don't mind cause they can look good to the hippies, the car companies like it cause they can charge $500 more for an engine and sell more cars since they won't be lasting as long, and the farmers love it because it is basically free money to be made from government financed crops.
ethanol can and will lower emissions, but it is at the long term expense of our wallets.
when the government/auto manufacturers/tree huggers gets its head out of its collective ass and starts persuing diesel and hybrid technologies we will all be better off.
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