3 Articles

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

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.

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.