Yes. E85 fuel contains 73% of the energy of gasoline. As a result, ethanol would need to be 25-40% cheaper per gallon than straight gasoline to be a bargain for consumers.
Studies conducted by the US Environmental Protection Agency www.epa.gov) and the American Coalition for Ethanol (ethanol.org) report that E10 Gasohol reduces volumetric fuel economy by about 2-4 percent as compared to using gasoline. In a car that averages 27 mpg on gasoline, a 2 to 3% reduction in fuel economy equates to a loss of under 1 mile per gallon. A 4 to 6% reduction equates to 1 - 2 fewer miles per gallon.
