Do Ethanol Refineries Benefit Everyone Equally

1
Do Ethanol Refineries Benefit Everyone Equally?

• By
• Tiffany Martin
• Animal Science and Dairy Science University of
  Georgia
• Ben Presten
• Agribusiness University of Georgia

2
What Is Ethanol?

• Produced from many crops
• Mainly corn
• E10
• Most common blend
• Automobile manufacturer support
• Contains oxygen for reduced emissions

3
Advantages of Ethanol-Blended Gasoline

• Increases profits
• Decreases gasoline prices
• Decreases petroleum usage

4
Disadvantages of Ethanol-Blended Gasoline

• Increased subsidies
• New buildings and facilities

5
U.S. Dept. of Energy RD Appropriations on
Biofuels
6
Corn Utilized In Ethanol Production
7
Subsidies Refineries Only Benefit Producers
Consumers In-State

• Subsidies and large producers
• Production supports refinery
• Consumers out-of-state pay

8
Refinery States Receive Higher Corn Prices

• Receive more subsidies
• Low transportation costs increase profit
• Refineries increase demand for corn

9
Corn Prices For States With vs. States Without
Ethanol Refineries
10
Consumers In-State Receive Lower Gas Prices

• Low transportation costs increase profit
• Increased supply decreases prices

11
Gasoline Prices For States With vs. States
Without Ethanol Refineries
12
Conclusion

• Producers and consumers both benefit
• States without receive less benefit
• States without should utilize incentives