2006-08-08 06:18:38 · 4 answers · asked by Philip S 2 in Cars & Transportation ➔ Maintenance & Repairs
In real costs, ethanol in the US is not cheaper. It is heavily subsidized (~ $0.54 / gallon), and additionally, US farm states have convinced the federal gov't to tax ethanol imports from countries like Brazil to protect American corn farmers and ethanol producers.
Furthermore, a gallon of ethanol has only 70% of the energy content of a gallon of gasoline. You don't get the same gas mileage with a gallon of ethanol-gasoline blended fuel.
The short-term pump price of a gallon of ethanol-gasoline is market driven, not cost driven. Supply-demand imbalances lead to higher prices.
2006-08-08 06:36:15 · answer #1 · answered by Tom-SJ 6 · 1⤊ 1⤋
It's not a cheaper source of fuel - the amount of regular fuel needed to produce and distribute ethanol negates the savings that ethanol provides!
2006-08-08 06:22:29 · answer #2 · answered by Mama Gretch 6 · 0⤊ 0⤋
ethanol is not cheaper at all. It is much more expensive to produce. It is renewable though.
2006-08-08 06:22:26 · answer #3 · answered by Mike Hunt 5 · 0⤊ 0⤋
because its not mainstream yet. Emerging technologies are always more expensive until they can be mass produced
2006-08-08 06:22:55 · answer #4 · answered by sexydp 3 · 0⤊ 0⤋