Abstract
The United States has been subsidizing ethanol since 1978. In the last decade, a subsidy has been added for biodiesel. The ethanol subsidy has ranged from 40 to 60 cents per gallon over the entire time period (Tyner and Taheripour 2007). The ethanol subsidy is currently 51 cents per gallon, and the biodiesel subsidy is 50 cents for biodiesel made from recycled materials, such as cooking grease or tallow and $1 per gallon for biodiesel made from oilseed crops, such as soybeans. Over the years, the objectives for biofuel subsidies have included in-
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