Analysis by economist Phil Verleger shows that refiners can bring down the cost of ethanol Renewable Identification Numbers by using more E85 to comply with the Renewable Fuel Standard, writes John Kingston. Verleger's analysis indicates that increasing the market share of E85 from almost zero today to 2% of the gasoline supply "will provide more than sufficient flexibility for the RFS program for the next two years," while a market share of 5% would bring enough flexibility through 2018. "The obvious solution to the RIN price problem involves no EPA intervention and no regulatory action at this point. It simply calls for boosting E85 sales," Verleger stated.
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