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Ethanol: Literature Review - page 7 / 17





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    • 6.

      The by-product of ethanol production from grain, which is a high-protein livestock feed ingredient.

    • 7.

      The effect of adding ethanol to gasoline on environmental quality.

    • 8.

      Many societal costs associated with petroleum energy, such as respiratory and other health problems, crop yield losses and damage to vegetation, environmental disasters (e.g., tanker mishaps), etc.

      • 5.2.1

        How will fuel ethanol impact Canadian agriculture? Fuel ethanol makes sense for many reasons. Particularly its benefits for

Canadian agriculture. These benefits, in turn, could serve to stabilize and improve farm income, which would increase the economic well being of rural and other agriculture-dependent sectors of Canada. (http://www.greenfuels.org/ethafood.html)

Ethanol production will not likely affect Canadian grain exports. If all gasoline sold in Canada contained 10% ethanol made from Canadian grains, 8 million tonnes of grain would be used, compared to current exports of 24 million tonnes, and current

production of 50 million tonnes. There will still be a surplus for export. (http://www.greenfuels.org/ethafood.html)

The Canadian greenfuel web page provides more information on the impact on the Canadian economy. To get this information visit http://www.greenfuels.org/ethaques.html. The topics discussed on this page are; Impact on grain prices, Co-products, Can ethanol be produced from off-grade or damaged corn? What are alternative feedstocks for ethanol production? How much ethanol is produced from a bushel of corn or wheat?

5.2.2 Fuel Ethanol: Is it Cost Effective?

Critics of ethanol- as a transportation fuel- have cited its higher production costs ( 35-45 cents/litre) relative to gasoline (19-24cents/litre). Although this may have been true in the past, the large size and new technology of Commercial Alcohols' Chatham Plant will make ethanol price-competitive, especially considering the environmental costs of burning gasoline. (http://www.comalc.com/fuel ethanol.htm)


The Economic Impact of the Demand for Ethanol

For information on this topic read a report written by Michael K. Evans, Professor of Economics from Northwestern University, this can be found at http://www.ethanolrfa.org/docs/evans.html. Information can also be found at the American Coalition for Ethanol web site at http://www.ethanol.org/.


Ethanol and the Environment

Increasing industrial activity and population growth has resulted in a rising concentration of 'greenhouse gases' in the atmosphere that contribute to the 'Greenhouse Effect'. These gases include carbon dioxide, methane, and nitrous oxide. The term 'Greenhouse Effect' refers to the Earth's trapping of the sun's incoming solar radiation, causing warming of the Earth's atmosphere. This offsets the Earth's natural climatic equilibrium, and results in a net increase in global

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