Increasing Ethanol Use Could Save U.S. Consumers $57 Billion
As the Congress and Administration work to formulate a national energy policy, a recent analysis demonstrates U.S. consumers could save upwards of $57 billion through the increased use of ethanol by reducing OPEC's influence on world oil markets. "Rising oil prices are a major contributor to the current economic slowdown," the report states. "Increases in crude oil prices can be viewed as a 'tax' imposed by foreign oil producers on American consumers." The report notes that increased ethanol use reduces the amount of oil imported by the U.S. and thus the amount of "tax" paid by American consumers.
The report, Ethanol's Role in Mitigating the Adverse Impact of Rising Energy Costs on U.S. Economic Growth, by renowned economist John Urbanchuk of AUS Consultants found that quadrupling the use of ethanol over the next fifteen years would:
- save American consumers $57.5 billion;
- add $685 billion to real gross domestic product;
- increase household income by nearly $186 billion; and,
- create more than 156,000 new jobs.
Additionally, farm income would increase as a result of expanded domestic markets for grain and other agricultural products. "As our nation forges a comprehensive national energy policy, ethanol can and should be an integral part of the domestic energy solution," the report states.
The report is available on line at
http://www.ethanolrfa.org/pubs.shtml
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