Using pooled regional time-series data and panel data estimation the study quantifies the impact of monthly ethanol production on monthly retail regular gasoline prices. According to the analysis by the researchers at CARD, the growth in ethanol production has caused retail gasoline prices to be US $0.29 to US $0.40 per gallon lower than would otherwise have been the case.
The analysis also shows that the negative impact of ethanol on gasoline prices varies across regions of U.S. Prices in the Midwest are impacted the most at US $0.39/gallon, while the Rocky Mountain region sees the smallest impact, at US $0.17/gallon. The results also indicate that ethanol production has significantly reduced the profit margin of the oil refinery industry.
According to the researchers, the results suggest that the reduction in gasoline prices came at the expense of oil refining firms' profits. They also found that their results were statistically significant across a range of model specifications and across all regions of the U.S.
To view the full report, click here.
1 of 19
Actual Real and verifiable Breakdown of corn use
* Feed/Residual (45.9% of total U.S. corn usage in 2007-08)
* Food/Seed/Industrial (35.2%)
* Export (18.9%)
25% went to ethanol production which has attributed to 100% of the price increase of corn and corn-based products - number 1 affected direct use product is chicken and chicken products such as eggs.
You should check your numbers before you post idiotic statements