As ethanol; an alcohol made from veggies like corn; this extra demand could cause a spike in the price. Why would this cause a spike in the price of corn? And why the sudden intrested in ethanol? What value does it have to us?
2007-02-16 12:28:48 · 11 answers · asked by Anonymous in Environment
ethanol is used currently as a fuel additive and people want to use it as pure fuel for cars. It's also what american whisky is made out of along with some beers. there is a debate about using ethanol as a fuel source because yes, it burns cleaner than gasoline. But the additional demand on the amount of corn we would have to grow along with the refining of fuel grade alcohol from it would be a huge amount of infrastruture to build. like all alternitive fuel sources they sound good and look good on paper, but no one wants to commit to spending billions of dollars on a whole new system that most likely will never take off like expected.
2007-02-16 12:35:11 · answer #1 · answered by grasshopper 3 · 2⤊ 1⤋
If ethanol uses corn and increases demand for that crop, then the law of supply and demand tells us the price of corn will increase. Once farmers have adjusted and grow more corn, the spike will be reduced.
The sudden interest in ethanol is to reduce our dependence on foreign oil. The theory is that the ethanol, being combustible, can replace some of the gas in your car's tank. There are some issues with that theory: some say more gas is used in producing the corn and processing it into ethanol than the gain in fuel value of the ethanol produced; and many cars (and boats, lawnmowers and airplanes) suffer damage to rubber fuel system parts from the ethanol.
I hope this helps.
2007-02-16 12:38:47 · answer #2 · answered by Joseph J 2 · 1⤊ 0⤋
The extra demand WILL cause a spike in the price, because of typical mismanagment of natural resources to make stockbrokers happy.
we'll go from one problem to the next, until we realize, that energy production should be either a government service, or in the nonprofit sector.
there are several reasons for this, but the main reason for a spike in price, is specualtion of suplly vs demand driving the price up, like it does all commodities.
many ethanol plants haven't even been built yet, but people are buying corn up on the markets in droves, pushing the prices up before it even is used for ethanol.
realistically, this will probably kill the dream of ethanol fuel, and take several family farms with it.
there is always an interest in alt fuels, when fuel cartels start gouging every penny they can.
it has the value of keeping more of our energy sources closer to home, and buying our fuels from Americans rather than arabs.
by the way...today's cars are built to handle ethanol blends. maybe if you are driving a pre-80s gas guzzler, it will cause problems for rubber and plastic components, but so will current standards of oil.
also, ethanol doesn't have to be made out of corn, it can be made out of straw.
it can be made out of pretty much anything, that contains glucose, or contains a polysaccharide that can be degraded to glucose.
2007-02-16 17:37:39 · answer #3 · answered by qncyguy21 6 · 0⤊ 1⤋
Its all about supply and demand since ethanol comes from corn oil and the demand for ethanol is graet especially now that countries want to use less fossil fuel and oil naturally prises it wil;l go up ethanol is a sfe alternativ to ethanol since when it combuses it gives carbon dioxide and water provided that the reaction is completed thats in the chemistry textbook or what they teach so now u know
2007-02-16 13:12:51 · answer #4 · answered by legolas g/Frederich 4 · 0⤊ 0⤋
Ethanol is a refinement of, say corn. If the farmer produces 1000 bushels of corn and is sold for cereal at a given price and now that same 1000 bushels is needed for Ethanol what of the Cereal. Now you have two bidders for the same 1000 bushels.
Ethanol can be burned in an internal combustion engine. It can and will replace OIL as a combustable fuel.
2007-02-16 12:39:25 · answer #5 · answered by einstein 4 · 0⤊ 1⤋
Since the ethanol is made from corn, their taking it off the shelves to make an alternitive fuel for cars to try and lower gas prices, and they want to save our atmosphere.
2007-02-16 12:35:00 · answer #6 · answered by freddy 2 · 0⤊ 0⤋
It's possible we can use ethanol as an alternative fuel - and suddenly people are becoming interested in it. But if we use if for fuel, what do we use for feed for all the animals farmers raise? So prices for milk, meat, eggs, etc will go through the roof. Supply and demand. Lots of demand, not enough supply causes prices to go up. It will cost farmers alot more to feed their animals - and they will pass off the cost to us, the consumer.
2007-02-16 12:35:05 · answer #7 · answered by Freedspirit 5 · 1⤊ 1⤋
It's subsidized food burning and will cause a domino effect on everything we are used to.
You can thank the irony causing Liberals for this in their search for alternative fuel.
Also, the price of tortillas is going up in Mexico, expect a bigger influx of illegals across the border
2007-02-16 12:40:04 · answer #8 · answered by Anonymous · 1⤊ 1⤋
Take it from someone who knows. It takes two or three times as much ethanol to go the same distance as one gallon of gas, plus it's corrosive to rubber and aluminum, pistons and rings and it evaporates fast. Fuel tanks have to have a vent to the atmosphere and some dumb environmental clod will start bleating about that.
They have an environ mental disease, Nyuk!
2007-02-16 17:00:09 · answer #9 · answered by Anonymous · 0⤊ 2⤋
Supply and demand, it's nearly as good as petrol/gas, cleaner and can replace it when it becomes more expensive than mass production of ethanol.
2007-02-16 12:35:40 · answer #10 · answered by Anonymous · 0⤊ 0⤋