Study Looks at Ethanol's Economic Impact
According to a recent economic analysis, the domestic
ethanol industry makes a significant contribution to the American economy and
saves taxpayers money.
The study by AUS Consultants notes that while the
ethanol industry can no longer point to reduced savings from farm program costs,
ethanol will continue to save the nation money because the industry generates
considerable household and farm income that results in increased federal tax
revenue.
Findings include:
- Ethanol will add almost $51 billion to the entire U.S. economy over a
seven year period from 1996 to 2002.
- Ethanol supports 55,500 jobs annually.
- Ethanol production will increase total household income by $12.5 billion
over the next seven years.
- Ethanol contributes more than $2 billion annually to the U.S. trade
balance.
- Ethanol generates $555 million annually of net tax revenue for the Federal
Treasury through personal and business income tax receipts.
The
study concluded that the nation's ethanol industry will provide a net savings to
the Federal Treasury and taxpayers of almost $4 billion over the next seven
years. "The contribution of the industry to the U.S. economy, in terms of
aggregate output, job creation, household and business income, and tax revenues,
is astounding," said Eric Vaughn, President of the Renewable Fuels
Association.
For copies of the report, contact Mary Wertschnig, Director
of Communications, Renewable Fuels Association at 202-289-3835.
