Look at Renewable Fuels Association website. Following article
Does anyone believe if you stop ethanol the oil companies will have the price of gas go down. No way they know what the market can bear and will not make profit on part of gallon that once included ethanol. Even with higher ethanol the savings to the environment is incalculable. Who are they trying to kid>
New University Study: Ethanol Reduced Gas Prices by More than $1 in 2011
May 15, 2012
Reminder: A media call with one author of the report, Professor Dermot Hayes, will occur at 2:00 p.m. Eastern today. Call information is 1-800-247-5110; passcode is Ethanol2.
(May 15, 2012) Washington - America’s growing use of domestically-produced ethanol reduced wholesale gasoline prices by an average of $1.09 per gallon in 2011, according to updated research conducted by economics professors at the University of Wisconsin and Iowa State University. The 2011 results, which are up from an average impact of $0.89 per gallon in 2010, were released today by the Center for Agricultural and Rural Development (CARD).
[Read RFA’s summary of the report here.]
The new analysis, an update to a 2009 peer-reviewed paper published in Energy Policy by professors Dermot Hayes and Xiaodong Du, also found gasoline prices have been reduced by an average of $0.29 per gallon, or 17%, from 2000-2011 thanks to the growing use of ethanol.
“Growth in US ethanol production has added significantly to the volume of fuel available in the US,” said Professor Hayes. “It is as if the US oil refining industry had found a way to extract 10% more gasoline from a barrel of oil. This additional fuel supply has alleviated periodic gasoline shortages that had been caused by limited refinery capacity. It has also changed the relative prices of gasoline and diesel and allowed the US to switch from being a net importer of gasoline to a net exporter. As a result of these changes, US gasoline prices are measurably lower than would otherwise have been the case. This gasoline price impact has been documented in a peer reviewed academic journal and the price dampening effect has increased as ethanol production has grown. This impact is greatest in the regions of the country where ethanol penetration is greatest.”
Three primary factors are responsible for ethanol’s more robust price benefit at the pump in 2011: higher oil and gasoline prices, higher ethanol inclusion, and ethanol being priced at a larger-than-normal
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