Despite a large number of studies that examine the influence of biofuels and biofuel policy on commodity prices, the impact of biofuel policy on commodity price variability is poorly understood. A good understanding of biofuel policy's impact on price variability is important for mitigating food...

Consumption of high-ethanol gasoline blends must increase if United States renewable biofuel mandates are to rise above current levels as envisioned by the Renewable Fuel Standard. One such blend is E85 which contains no more than 85% ethanol and no less than 15% gasoline. We derive the demand...