... By drastically reducing the amount of liquid fuel needed, alternatives like ethanol become much more palatable.
I think you refer to corn based ethanol here, but not to sugar cane based ethanol, which displaced most of the gasoline used in Brazil as was cheaper and slightly more powerful but did give only 70% of the range that gasoline did. Brazil is now a net exporter of oil energy. The US could be too if it grew and imported sugar cane ethanol.
The subsidy of 43 cents of taxpayers money per gallon of ethanol oil companies got for mixing ethanol into their gasoline no longer exists. (A month or so ago it died.) That means about a 4 cent per gallon increase in the cost of "gasoline" which in fact was ~10% ethanol (as anti-knock agent as ethanol has higher octane rating and additive used earlier for this caused cancer etc.). Thus now the drivers pay for full cost of corn based ethanol as additive to gasoline, instead of the tax payers paying part of it, but of course the tax payers still pay the farm subsidy to the corn growers. It is the largest of all the farm subsidy costs.
It and other farm subsidies make food exports more competitive with those of other countries like Brazil - compensate for Brazil's longer growing seasons and lower labor cost. If they did not exist, more US crops would be sold in the US and the greater supply would make price of food in the store less. So Joe Tax payer has higher taxes to pay with net effect of making his grocery bill higher.
More discussion in my old thread "How DUMB can US voters be?" - More illustration that the rich have lobbied Congress to get richer. The US has a government "Of the rich, by their lobbyist, and for their corporations." One thing the people could do, if they ever did get control of the government,* would be to eliminate the lower tax rate on capital gains as that is large part of why the rich pay about half the effective tax rate on their income that the salaried worker does.
* They never will so long as national elections cost a billion or more dollars. I.e. the "99% " are stuck with government "Of the rich, by their lobbyist, and for their corporations."
If you want to see my suggested tax code see:
http://www.sciforums.com/showpost.php?p=1792841&postcount=1
It has all income treated equally (with a simple progressive schedule), no taxes on corporations (but they must distribute profits within 10 years to people who are taxed or send the profit made 10 years ago to the IRS) and is so simple the tax law fits on a 3.5 index card, not 30,000 volumes of special interest, lobbyist written laws. Once the income has been taxed, you can give it to someone else and it is not taxed again (no gift tax or inheritance tax) The rate progressive rate table is annually adjusted to make "pay as you go" government, except in declared war time. Thus, every new benefit for the current generation's government gives out to win votes increases their, not their children's, tax burden.
"Pay as you go" prevents the instability of democracies discussed here:
http://www.sciforums.com/showpost.php?p=2573119&postcount=1
Which was first discussed in
Democracy in America by Alexis de Tocqueville in 1835: "... mutually corrupt citizens and the democratic state. Citizens vote for those politicians who promise to use the state to give them whatever they want. ..."
But with the invention of fiat money has become much worse, much more unstable, than de Tocqueville could ever have imagined. - As world's worst ever depression, soon to come, will show.