Does ethanol gas reduce emissions significantly ?
No. It is primarily an octane booster.
Does ethanol gas reduce power significantly ?
Depends on what you mean by significantly, but generally, yes. Ethanol has about 88,000 BTU per gallon. Gasoline has about 115,000 BTU per gallon. So yes, there is significantly less energy per gallon in ethanol. The more ethanol is in your mix, the worse your performance.
Are there any other benefits to ethanol-free gas like less carbon deposits, easier on valves, easier cold starts etc.?
Not that I am aware of.
Some people consider using ethanol-free gas to be a good way to say “fuck you” to Big Corn, but that’s more of a political thing and has nothing to do with any technical reasons like carbon deposits, etc.
If you are comparing it to ethanol fuels, high ethanol concentrations can also damage the fuel systems of older vehicles, though generally speaking even older vehicles can usually use up to 10% ethanol without damage. Once you get up around 20% though, all bets are off.
Aside from price, are there any other disadvantages of ethanol-free gas?
That depends on what they are using instead of ethanol to boost the octane rating. I don’t know if they still use tetraethyl lead but it’s some pretty nasty stuff. MTBE isn’t much better.
You have to be very careful with E85. It will of course be significantly less expensive than E15 and lower fuels, but quite often the gas stations will be taking advantage of the fact that most Americans can’t do basic math and can’t figure out that their cost per mile is actually worse with E85 and are only looking at the fact that E85 is so much less expensive. Another trick they will do is advertise the cost of E85 per liter instead of per gallon, making it that much more difficult for folks to figure out how much it is really costing them.
I could only find the price of one E85 station around here. It was advertised in gallons and not liters, so no deception there, but the cost difference of E85 was nowhere near enough to make up for the reduction in mileage and energy content, The cost per mile would actually be significantly higher using E85 vs the E10 from the same gas station. (York, PA, for what it’s worth)