An earlier study by researchers at USDA concluded that grain
ethanol produces twice the energy than goes into its production.
Now, USDA's Economic Research Service has completed an economic
study that shows ethanol helps our economy and puts money back
into the household budget. The conclusion is that increasing the
use of ethanol will not only reduce our nation's dependence on
foreign oil, but create economy-wide benefits. The economists
report: replacing petroleum gasoline with less expensive ethanol
would reduce domestic spending on motor fuels. This reduction
would occur as long as ethanol is competitive with imported
petroleum oil. The cost savings from reduced motor fuel
expenditures are passed on to households. The Department of
Energy expects the price of ethanol to remain competitive at
about $2 a gallon, with oil going higher than $100 a barrel by
2020. As the report asserts, success in meeting the RFS depends
on overcoming some challenges, but the long-term gains to the
economy from increased produ