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Title: Alcohol fuels

Abstract

Ethanol is an alcohol made from grain that can be blended with gasoline to extend petroleum supplies and to increase gasoline octane levels. Congressional proposals to encourage greater use of alternative fuels could increase the demand for ethanol. This report evaluates the growth potential of the ethanol industry to meet future demand increases and the impacts increased production would have on American agriculture and the federal budget. It is found that ethanol production could double or triple in the next eight years, and that American farmers could provide the corn for this production increase. While corn growers would benefit, other agricultural segments would not; soybean producers, for example could suffer for increased corn oil production (an ethanol byproduct) and cattle ranchers would be faced with higher feed costs because of higher corn prices. Poultry farmers might benefit from lower priced feed. Overall, net farm cash income should increase, and consumers would see slightly higher food prices. Federal budget impacts would include a reduction in federal farm program outlays by an annual average of between $930 million (for double current production of ethanol) to $1.421 billion (for triple production) during the eight-year growth period. However, due to an partial tax exemptionmore » for ethanol blended fuels, federal fuel tax revenues could decrease by between $442 million and $813 million.« less

Publication Date:
Research Org.:
General Accounting Office, Washington, DC (USA). Resources, Community and Economic Development Div.
OSTI Identifier:
6391449
Report Number(s):
GAO/RCED-90-156
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
09 BIOMASS FUELS; 32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; ALCOHOL FUELS; PRODUCTION; ETHANOL; MIXTURES; GASOLINE; PETROLEUM; FUEL SUBSTITUTION; CONGRESSIONAL INQUIRIES; COST BENEFIT ANALYSIS; ECONOMIC IMPACT; GOVERNMENT POLICIES; OCTANE; SUPPLY AND DEMAND; TAX LAWS; ALCOHOLS; ALKANES; DISPERSIONS; ENERGY SOURCES; FOSSIL FUELS; FUELS; HYDROCARBONS; HYDROXY COMPOUNDS; LAWS; LIQUID FUELS; ORGANIC COMPOUNDS; PETROLEUM PRODUCTS; SYNTHETIC FUELS; 093000* - Biomass Fuels- Economic, Industrial, & Business Aspects- (1990-); 097000 - Biomass Fuels- Legislation & Regulations- (1990-); 320301 - Energy Conservation, Consumption, & Utilization- Industrial & Agricultural Processes- Energy Sources; 090800 - Biomass Fuels- Production- (1990-)

Citation Formats

. Alcohol fuels. United States: N. p., 1990. Web.
. Alcohol fuels. United States.
. 1990. "Alcohol fuels". United States.
@article{osti_6391449,
title = {Alcohol fuels},
author = {},
abstractNote = {Ethanol is an alcohol made from grain that can be blended with gasoline to extend petroleum supplies and to increase gasoline octane levels. Congressional proposals to encourage greater use of alternative fuels could increase the demand for ethanol. This report evaluates the growth potential of the ethanol industry to meet future demand increases and the impacts increased production would have on American agriculture and the federal budget. It is found that ethanol production could double or triple in the next eight years, and that American farmers could provide the corn for this production increase. While corn growers would benefit, other agricultural segments would not; soybean producers, for example could suffer for increased corn oil production (an ethanol byproduct) and cattle ranchers would be faced with higher feed costs because of higher corn prices. Poultry farmers might benefit from lower priced feed. Overall, net farm cash income should increase, and consumers would see slightly higher food prices. Federal budget impacts would include a reduction in federal farm program outlays by an annual average of between $930 million (for double current production of ethanol) to $1.421 billion (for triple production) during the eight-year growth period. However, due to an partial tax exemption for ethanol blended fuels, federal fuel tax revenues could decrease by between $442 million and $813 million.},
doi = {},
url = {https://www.osti.gov/biblio/6391449}, journal = {},
number = ,
volume = ,
place = {United States},
year = {Sun Jul 01 00:00:00 EDT 1990},
month = {Sun Jul 01 00:00:00 EDT 1990}
}

Technical Report:
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