Ethanol blended gas and petroleum products may appear good for farmers and agriculture. Yet are the financial subsidizes to those industries a good thing - either overall for the economy, for the consumers or even for those financial sectors? Is the financial emphasis a good idea in terms of economics?
Not so - not from a financial or even an automotive or consumer effectiveness standpoints.
Financial subsidizes may be given to the agricultural industry - both direct financial costs , and give rise to both increased profits and futures prices in those industries. However not only do food stocks and food unit prices increase but also the ultimate consumer pays more both for food and reduced miles per gallon fuel efficiency - leading to increased costs overall for both. True futures prices on the markets may increase - but is this good thing overall - in the global picture.
The growing use of ethanol is making energy content more of an issue — particularly as record fuel prices crimp consumers.
The Energy Information Administration is keeping track of how ethanol is affecting average fuel economy in the
Moreover, the ethanol impact is expected to increase because the federal government approved an energy bill last year that encourages a sharp increase in ethanol production.
In
Ronald Leone, executive director of the Missouri Petroleum Marketers and Convenience Store Association, said the energy content of ethanol was a “policy issue for others to decide.” His association helped get the law changed from how it was originally proposed so that ethanol-blended fuels would not have to be sold if their wholesale price was more than conventional fuel.
In
Some motorists say they are already seeing the effect of ethanol on gas mileage
Manitoba Hotel Travel Theme Rooms
Sphere: Related Content
Leave a comment
Trackback URL for this entry | Commentfeed