My initial guess would be that higher than 15% ethanol would make for corrosion issues over time. Probably due to coating formulations and all that.
That having been said, there's been so much FUD about ethanol that I know people willing to fight an hour's traffic each way just to fill up with ethanol- free gas from one station out in the middle of nowhere, because they're convinced it'll do I have no idea what.
One footnote on "food shortages"- most of them are distribution based, not supply based. We're growing more than enough corn. Then it hits the commodities exchanges and gets traded around until the fat cats think they've made enough profit. Same with the price of oil- it gets churned around the exchange until someone's made enough profit, *then* it hits the refinery. So the price you pay at the supermarket or pump has no actual relation to the price when the oil is pumped or corn is harvested.
Generally it's environmental laws and policies that prevent the flow of food or oil. See Keystone pipeline etc.
ethanol itself is a big farm scam. Those farmers have a very powerful lobby and they basically ramrodded through these regulations and laws (in the name of environmentalism) that a certain amount of fuel must be ethanol to create more market demand for their corn. Simple as that.
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