Gas Would be 29 Cents Higher Per Gallon Without Ethanol
Des Moines--Ethanol reduced wholesale gasoline prices by 29 cents per gallon between 2000 and 2011, according to an updated study conducted by Iowa State University’s Center for Agricultural and Rural Development. A similar study done a few years ago showed ethanol reduced the wholesale price of gasoline by just under 28 cents per gallon between 2000 and 2010.
The original study wasn’t funded, it was conducted because Professor Dermot Hayes, who authored the study with then-graduate student Xiaodong Du, was interested in the subject. The results of the study were published in Energy Policy, a peer-reviewed journal.
The Renewable Fuels Association funded an update of the study to include 2011 data.
“Last year, we were careening toward $5 gasoline,” said Bob Dineen, RFA president and CEO in aDelta Farm Press article. “Because of ethanol, because of theRenewable Fuel Standardrequiring refiners to use renewable fuels, consumers were given some measure of relief,” he added.