Ethanol

Published April 19, 2007

Ethanol and other biofuels increasingly are becoming controversial. Supporters of ethanol cite its potential to decrease our dependence on oil from the Mideast while also providing a cleaner and cheaper fuel alternative for consumers. However, ethanol may not be the miracle solution it appears to be. As this Research & Commentary collection shows:

 The energy required to make ethanol, combined with ethanol’s lower energy content, make it unlikely that ethanol will significantly reduce our reliance on fossil fuels;

 Ethanol reduces carbon monoxide emissions – which are not a problem in any U.S. city – while increasing the production of ground-level ozone, which threatens to put many cities out of compliance with EPA standards;

 As the price of corn rises due to its demand to produce ethanol, business and consumers who don’t grow corn – including cattle ranchers, dairy farmers, food processes and retailers, and even restaurants – pay the price; and

 Even with today’s high oil prices, ethanol is not price-competitive with conventional gasoline without massive taxpayer subsidies.