A study by an oil industry group predicting the Renewable Fuel Standard will cause higher fuel prices is flawed because it assumes that companies can only cut fuel sales in order to meet the blending requirements, write Iowa State University economists Bruce Babcock and Sebastien Pouliot. "There are viable options versus restricting supply and driving up prices. A more likely scenario is for companies affected by the RFS to evaluate available options and pursue an option that offers the greatest financial return over the longest term, even when an upfront investment is required."

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