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Abstract

This report to the President and the Congress assesses the feasibility of achieving the Energy Security Act's goal of producing 8.4 billion gallons of alcohol per year--equal to 10 percent of all U.S. gasoline consumption--by 1990. The goal, though technologically attainable, is not economically feasible even under optimistic market scenarios because it would require $41 to $66 billion in Government subsidies over the 1983-90 period. A more realistic maximum potential, with existing subsidies, is 1.5 billion gallons of alcohol fuel per year.

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