Ethanol Economics
The common use of ethanol as an alternative form of energy and fuel is becoming more and more popular everyday. One of the main reasons for its growth over the last few years is its positive effects on today's economy. Studies have shown that ethanol has had a great impact on America's economical budget and will continue to help conserve our money in the future. Ethanol has been known to lower the cost of gasoline, add to the nation's fuel supply, and add value to agricultural farm production. Let us take a look at how these benefits affect our nations economical budget.
Gasoline prices are at an all time high and it is become an issue amongst drivers in America. Not to mention the rumors of petroleum shortages in the world which ultimately inflate the cost of petroleum barrels. However, it has been reported by the Consumer Federation of America that ethanol blended gasoline can save consumers as much as eight cents per gallon. There are many fuel suppliers that are currently blending 10% ethanol into their gasoline and if only more petroleum marketers did this, American drivers could save hundreds of dollars per year by simply using ethanol blended fuel. Not only will ethanol help lower gaoline prices but it will also provide the nation with a larger supply of fuel.
The demand for gasoline continues to grow every year and the prices continue to inflate at a rapid pace. In a ten year span between 1996 - 2006, there was a 20 billion gallon increase demand for gas. Ethanol production also increased by a whopping 4 billion gallons over the same period. That means 20% of the gasoline demand increase was met by ethanol production. In fact, that number has risen to 30% since the year 2000. It is hard to imagine how much higher gasoline prices would be if it weren't for ethanol.
One other economical boost worth noting is how much ethanol continues to increase farm income and reduces federal farming programs. Since the United States uses mainly corn to manufacture ethanol, the U.S. Department of Agriculture reports that ethanol production rises the value of a bushel of corn by thirty cents while in other regions where ehtanol plants are built, the price per bushel of corn is up to 8 cents higher.
Overall, ethanol is an excellent form of alternative fuel which not only helps our economy's budget, increases our fuel supply, and adds great value to farm production and agriculture. This along with the non toxic, harmless effect it has on our environment and other benefits such as cleaner air and reduced exhaust emissions, ethanol is quickly becoming the leading source of alternative fuel. As the research and development of ethanol fuel continues to expand, we can look forward to a nation free from petroleum toxic burned fuel and a fresh, cleaner air.
To start saving money on gasoline by developing your own ethanol still and enjoy the benefits of home made ethanol fuel, click here to
learn how to make ethanol.