Expert: Careful on biofuel subsidies

A recent study states that government subsidies for the ethanol industry need to be more critically evaluated, but ethanol supporters say the billions of dollars government funding has helped the industry grow.

The report by Doug Koplow, an energy subsidy analyst from Cambridge, Mass., questions whether the ethanol subsidies are the best way to reduce dependence on foreign oil. Koplow said the extremely high returns on investments into ethanol plants are diminishing.

indystar