Study: U.S. Ethanol Industry Makes “A Significant Contribution to the Economy”
The U.S. ethanol industry added $42.1 billion to the nation’s gross domestic product and supported nearly 340,000 jobs in 2016, according to a new study commissioned by ABF Economics. The study, released today by the Renewable Fuels Association at the 22nd annual National Ethanol Conference, looked at the contribution of the ethanol industry to the U.S. economy in 2016.
“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,” the study found.
According to the analysis, the production and use of 15.25 billion gallons of ethanol last year also:
- contributed nearly $14.4 billion to the U.S. economy from manufacturing;
- added more than $22.5 billion in income for American households;
- generated an estimated $4.9 billion in tax revenue to the Federal Treasury and $3.6 billion in revenue to state and local governments;
- displaced 510 million barrels of imported oil, keeping $20.1 billion in the U.S. economy.
“As these figures show, growth of the U.S. ethanol industry clearly ripples throughout our economy,” said RFA President and CEO Bob Dinneen. “Our industry produced nearly 340,000 jobs last year and displaced more than 500 million barrels of imported oil, bringing well-paid jobs to local communities that are helping a domestic energy industry. The footprint of the U.S. ethanol sector touches every consumer in every city. This study provides definitive proof that the U.S. ethanol industry is helping to power the country’s economic engine.”
“The ethanol industry is a strong contributor to the U.S. economy, bringing jobs and tax revenue, while helping to displace imported oil,” said Economist John Urbanchuk, the study’s author and a managing partner at ABF Economics. “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,” he added.
The full study, prepared by the RFA, can be found here.