Economic Impacts of US Ethanol Mandates and Their Implications for Missourians

Abstract

On January 1, 2008, the Missouri Renewable Fuel Standard Act (MO RFSA) became effective; mandating that all gasoline sold in the state contain 10% ethanol. The fuel with 90% conventional gasoline and 10% ethanol is commonly referred to as “E10.” Proponents of the law believe that “Missouri's [RFSA] benefits consumers, our economy, the environment, and Missouri farmers.” Others celebrate the new standard for reducing Missouri's dependence on foreign oil, developing a new in state production industry, and providing greater demand for locally grown crops.