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Are incentives for alternative fuel production effective?

I assume that they are, but can anyone find credible sources in the US (preferably in the US, but also in other countries) that show that incentives and grants help spur alternative fuel production or other innovative automotive production. Sources, please!

Public Comments

1. no. To make biodiesel credible, it would take incentives 2 times the cost of regular diesel. Are you prepared to have your taxes increased on fuel by 300% to cover those incentives?
2. Politics got in the way. US taxpayers pay ethanol producers around $1/ gallon to produce ethanol. There is nothing saying the ethanol has to stay in the US, so they ship it to Europe where it can be sold for $5/gallon. We are financing Europes fuel. RenewableEnergyAccess.com