Ethanol Supply and Demand.

Interesting opinion piece in the Missoulian about <a href="http://www.missoulian.com/articles/2005/04/05/opinion/opinion3.txt" target="_new">ethanol</a>. It more correctly points out than I ever have the glut of ethanol all ready on the market and how mandating ethanol in fuel here will only cost consumers. I admit the Montana bill now requires there to be enough in state production before the mandate goes into effect but that leads me to a question. Where are these plants in Montana going to sell their ethanol until enough capacity is built to kick the mandate into effect?<br />n<br />n<blockquote>Given the economies of scale, distance to large markets and the increased efficiency of distilling corn (as opposed to barley or other grains) into ethanol, it's unlikely that the Legislature can pass any law putting Montana ethanol producers on a level playing field with those in the Corn Belt.</blockquote><br />n<br />nThe economics of the situation are just against Montana here. But never let something as simple as basic economics stop the Montana legislature or the Governor. Higher price to the Montana consumer is their goal.<br />n<br />n<b>Wise men profit more from fools than fools from wise men; for the wise men shun the mistakes of fools, but fools do not imitate the successes of the wise. Cato the Elder</b>