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It could be argued that flex-fuel vehicles are simply a product of government subsidies and the automotive industry's self-conjured up image of environmental saviors. What does this mean? Well, vehicles capable of running E85 receive CAFE credits that help automakers offset some of their less fuel-efficient offerings. This allows manufacturers to continue producing gas-guzzling vehicles while also keeping the government at bay. In addition, production of flex-fuel-capable vehicles is a relativel

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What is a plug-in vehicle worth? When it comes to CAFE credits, the answer to this question is a bit complicated. As we discussed in our Greenlings look at CAFE, the system allows for credits. One effect is that automakers who build vehicles that can burn E85 – even if these cars don't actually use the biofuel – get a bit of a pass for their dirtier vehicles. When it comes to EVs, a potential "sell one, get one free" deal is in the works.

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Writing in the Washington Times, William O'Keefe says U.S. automakers are using their "green" E85 campaigns to divert attention from a generous federal tax loophole that is creating an artificial market for ethanol.

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