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How would you fix the economy and budget issues?

Debating with the enemy


 
 
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Old 06-24-2011, 12:22 PM   #10
firstdown
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Re: How would you fix the economy and budget issues?

Quote:
Originally Posted by Schneed10 View Post
But isn't there a return on investment case to be made on this?

You can mix ethanol at up to 10% levels into gasoline and cars will still run fine. I haven't done the math, but the financial analyst in me says:

- You have a cash outlay of $6 Billion
- You have savings on gasoline of 10% x Gallons of Gas Sold at Pump x (Price of Gasoline per Gallon - Price of Ethanol per Gallon)

So the question becomes, without the Ethanol subsidy could we still realize the savings on the 10% of gasoline that's displaced by Ethanol?

I'm sure this is overly simplified, but somebody somewhere needs to do an ROI on this before recommending cutting the subsidy.
First off the 10% enthanol level in gas does cause cars not run as effecient as they should. On the marine side its been a nightmare and caused millions of damage to boats. Enthanol is also more expensive to produce then gas so it does not save money it cost money. Those weed wackers and gas blowers you have that seem to not run as good its probably because of E10.
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