New Report Outlines Ethanol’s Economic Impact

Cindy Zimmerman

Despite difficult current economic conditions, the ethanol industry is poised to meet the production targets of the Renewable Fuels Standard (RFS), according to a report released today by LECG LLC, a prominent economic consulting firm.

UrbanchukThe report, “Contribution of the Ethanol Industry to the Economy of the United States,” was prepared by John M. Urbanchuk, Director, LECG LLC for the Renewable Fuels Association.

“As this report points out, these are unquestionably tough times for the economy and the ethanol industry,” said LECG Director and report author John Urbanchuk. “Nevertheless, it also finds that ethanol capacity continues to expand and that the industry is in position to meet the 36 billion gallon renewable fuels goal set for 2022. Through additional investment in both grain and cellulosic ethanol capacity, the industry will not only create new green jobs and provide increasing tax revenue to federal, state and local governments, but will continue to reduce our dependence on foreign oil.”

The report notes that the net benefit to the federal government, after for ethanol related tax credits, was more than $7 billion in 2008, providing a return on every dollar invested of 2.5 to 1.

Read the report here.

Ethanol, News, RFA