Legislators can solve both energy and environmental problems by promoting the use of blended fuels containing ethanol as an alternative to regular gasoline. Increasing the use of blended fuels through subsidies and/or tax exemptions, or completely replacing regular gasoline by making blended fuels mandatory in all cars, will decrease dependency on petroleum,provide new markets for local farmers, and will also help to reduce air pollution from traffic and the rapidly increasing CO2 emissions from the transport sector. Canada, The United States and India have all undertaken to promote the use of blended fuels through different policy measures.