Would ethanol production be economically viable with out direct federal government involvement, i.e., forcing it upon consumers at bayonet point?
The only viable ethanol is from Brazil, where the use beets and sugar cane to make ethanol. Our corn farmer corporations like Archer Daniels Midland got something like a 40% tariff added to Brazilian ethanol to make it more expensive delivered to the US. They can grow things faster and cheaper in Brazil than we can here. That is why E85 cars are big sellers down there.
Ethel is not a bad fuel. Many cars ran on it originally. Formula 1 race cars burn ethanol. The problem with it is that it dissolves rubber fuel lines and it does not store as long as gasoline. It also tends to have water condensaton problems in colder temperatures below 40F. These are the worst in carburated engines. Water condenses in the bowl of the carburator and then will not run. Lastly, ethanol tends to gel over time, especially with temperature changes. When it gels it plugs up the jets in the carburator. All these things have been a boom to fuel stabilizer sales. Fuel stabilizer does extend the life of the fuel but now I drain and run dry all my carburated small engines if they are going to sit for more than a few weeks.