E85 Boondoggle Of The Day: Cost-Benefit Analysis
Government fleet purchases are a major factor in keeping the ethanol crazy-train rolling. Not to mention damning evidence of ethanol's inviability on the free market. But even local governments who hoped that cheap ethanol would reduce costs and support energy independence are beginning to realize that switching to corn juice just brings lower mileage and higher food prices. In fact, the Times Herald-Record reports that Orange County, NY actually did the math and found that the 25 percent reduction in efficiency with ethanol outweighed any benefits. And that's not even including the costs of installing a new pump and fuel tank. And keep in mind we're not talking about some business that is continuously hacking away at its bottom line. Governments are usually more than happy to spend a little extra on something like ethanol that will provide a "we're doing the right thing" PR buzz. Indeed, E85 has come as far as it has based largely on government fleet purchases made as political favors to the ethanol alliance. Now that local governments can no longer justify ethanol's shocking inefficiency, the party seems to be winding up. And not a moment too soon.