Today's Most Popular Video
Feb 3, 2009 11:17 pm US/Central
Reality Check: Health, Environment And Ethanol
(WCCO)
At one of Minnesota's
370 ethanol pumps in St. Paul on Tuesday, the price for a gallon of E-85 is
40 cents less than a gallon of gasoline.
The reason for that is because taxpayers subsidize it. However,
a new study from the University of Minnesota says ethanol may not be environmentally friendly.
In Minnesota, ethanol is now a $6 billion industry that provides about 26,000 related jobs,
according the Minnesota Department of Agriculture.
And a new study from the U of M says, based on environmental and energy costs, it might not be worth it.
IN FACT...
According to the U, the cost of creating a gallon of gasoline is 71 cents a gallon. Corn based ethanol cost 72 cents to $1.45 a gallon, while cellulosic ethanol costs 19 to 32 cents a gallon.
But here's what you NEED TO KNOW.
The University of Minnesota calculates the costs of making ethanol from tractor to tank. Accounting for everything from diesel fuel used to plant the corn, to pesticides and fertilizers used to help it grow, to electricity in ethanol plants.
Through their calculation it takes more energy to make ethanol than gasoline.
But that's NOT THE WHOLE STORY.
You need to know that
the government subsidizes not just ethanol production, but also oil production. A gallon of E-85, which is 85 percent ethanol, costs about $1.45 a gallon today, but without subsidies would be $2.23.
A gallon of gasoline today at $1.85,
without subsidies, would cost about $5.28.
That's Reality Check.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Deputy Attacked, Other Inmates Intervene
Click to enlarge
Stumble It!
Reporting
