Study Shows Ethanol’s Vast Economic Impact
February 24, 2015 - Issue #205View Full Issue
A study released by the Renewable Fuels Association (RFA) at this year’s National Ethanol Conference (NEC) shows ethanol’s wide-ranging impact on the economy of the U.S. The new ABF Economics study entitled, “Contribution of the Ethanol Industry to the Economy of the United States in 2014,” noted that the ethanol industry had immense job creation, national security, and economic benefits.
In 2014, the study reported that the ethanol industry accounted for 83,949 direct jobs and 295,265 indirect and induced jobs throughout all sectors of the economy. The ethanol industry also added $52.7 billion to the national GDP, $26.7 billion to household incomes, and $10.3 billion in taxes which help stimulate national, state, and local economies.
ABF Economics economist and study author John Urbanchuk noted, “The ethanol industry continues to make a significant contribution to the economy in terms of job creation, generation of tax revenue, and displacement of imported crude oil and petroleum products. The importance of the ethanol industry to agriculture and rural economies is particularly notable. Continued growth and expansion of the ethanol industry through new technologies and feedstocks will enhance the industry’s position as the original creator of green jobs, and will enable America to make further strides toward energy independence.”
RFA President and CEO Bob Dinneen added, “Numbers are powerful. These numbers reflect the vast reach of the U.S. ethanol industry across many sectors of our society. Each of the nearly 380,000 jobs represents a solid, stable income for a parent who can continue to provide for their family, buy groceries, and pay the rent on time. Each of the $10.3 billion spent in local, state, and federal taxes mean improved public services, safe, drivable roads, more teachers for local school systems or greater access to the latest technology and information for students. And, each of the 515 million barrels of oil we no longer have to import, mean less dependence on often volatile countries and a more stable energy future for all Americans.”
A brief overview of the study’s findings shows the ethanol industry in 2014:
- Added $52.7 billion to America’s gross domestic product
- Accounted for 83,949 direct jobs and 295,265 indirect and induced jobs;
- Generated $26.7 billion to household incomes;
- Added $10.3 billion in federal, state and local taxes; and
- Displaced 515 million barrels of oil, the equivalent of $49 billion
To review the entire study, please click here.