Murray State University
STUDY 1: Costs of Alternative Fuel Production
Institution
Murray State University
Faculty Advisor/ Mentor
David Eaton
Abstract
The future for alternative fuels looks bright. With international oil prices reaching record highs and prices at the pump soaring, the United States has turned to ethanol as a substitute for oil. However, is ethanol an economical solution to America's dependence on oil? This paper attempts to answer this question by analyzing the costs associated with producing ethanol and oil. My research begins by identifying the direct costs and externalities associated with each source of fuel. Then, regression analysis is used to compare the two sources of fuel. From the regression analysis, the more economical fuel source is identified.
STUDY 1: Costs of Alternative Fuel Production
The future for alternative fuels looks bright. With international oil prices reaching record highs and prices at the pump soaring, the United States has turned to ethanol as a substitute for oil. However, is ethanol an economical solution to America's dependence on oil? This paper attempts to answer this question by analyzing the costs associated with producing ethanol and oil. My research begins by identifying the direct costs and externalities associated with each source of fuel. Then, regression analysis is used to compare the two sources of fuel. From the regression analysis, the more economical fuel source is identified.