The Economist- Behind Detroit's sudden embrace of ethanol

An Economist article recently outlined the defining policy actions that have led Detroit automakers to roll out smaller flex-fuel vehicles at the 2008 Detroit Auto Show. The article draws the connections between public policy and the private sector's response to the mandates for more ethanol production and higher CAFE (corporate average fuel economy) standards -- automakers can earn fuel-economy credit for producing flex-fuel vehicles (those that can run on 85% ethanol or 100% gasoline) for an additional cost of only $200. The disparate use of diesel in the EU vs. the US is also discussed. While the article criticizes corn ethanol, the authors cautiously recognize cellulosic ethanol as a better alternative.