Energy by fiat-1: Here's the blendwall

Welcome to the US blendwall. Only by expanding can the gasoline market now accommodate new amounts of federally mandated ethanol. Yet gasoline consumption has stagnated in the US. An expanding requirement for ethanol in gasoline thus has outgrown the market's capacity to use the required substance. This is the blendwall. What happens now? Congress should have considered the question when, in 2005, it reinstated centrally planned fuel selection and again, in 2007, when it complicated and enlarged the mandate for renewable fuels. It should have accounted for the possibility that its judgments about energy markets might be wrong. Alas, politicians seldom admit fallibility. And their judgment...

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