I couldn't make this link work when pasted into this message. I think if you copy it into the address/navigation bar it will work. It will take you to a summary of Wang's study on imputs to ethanol production process.
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http://ncga.com/public_policy/ PDF/03_28_05ArgonneNatlLabEthanolStudy.pdf"
this is a link to an article about Wang's work:
http://www.sdi.qld.gov.au/dsdweb/v3/guis/templates/content/gui_cue_cntnhtml.cfm?id=16080 YOu can also Google "wang ethanol argonne" and get links one of which will be the first one I gave above. It will take you to the summary of Wangs study.
The answer is "YES" it costs something to produce ethanol it's just more efficient process than the production of gasoline. However, they are just getting started on cellulosic ethanol which is made from plant waste. We currently produce enough plant waste that would produce an amount of ethanol equal to about 4 times current production. Now plant waste doesn't cost anything, right?
NOw ethanol, given current technology, will not replace gasoline entirely. Current technology will produce (if expanded to potential) about 20-30% of the gasoline demand. But ethanol production can be expanded quickly (well, quicker than developoing some alternative newer technologies) and reduce our imports of foreign oil which puts us at considerable economic risk (from disruptions of oil supply). An oil supply disruption of 5% to 10% is certainly possible (at any time). Now, with ethanol we have a way to fairly quickly produce 5% (and in a little more time 10%) of our gasoline demand. This would provide us with protection from a disruption of oil supply of 5% or a bit more. Also, expanding the infastructure for corn ethanol production will put us in a better position to start off cellulosic ehtanol from a more economic base. Cellulosic ethanol has considerably more potential output than starch based (corn, beets, sugar cane) soureces
NOte that Ethanol 15 (15% ethanol) can be burned in any engine that burns gasoline. You are ready to go right now to use E15 if you drive a gasoline burning engine. When you use E15 you would be reducing your gasoline consumption by 15% - and without the considerabale expense of buying a hybrid vehicle!