ShareContribution of the Ethanol Industry to the Economy of the United States in 2014,” prepared by ABF Economics on RFA’s …">
(Posted Fri. Feb 20th, 2015)
The ethanol industry added $52.7 billion to the national GDP in 2014 according to a study released today by the Renewable Fuels Association at this year’s National Ethanol Conference. “Contribution of the Ethanol Industry to the Economy of the United States in 2014,” prepared by ABF Economics on RFA’s behalf, quantifies the economic, national security and job creating benefits of domestic ethanol production in 2014.
“The ethanol industry has certainly fueled demand growth for corn for nearly a decade now, but it has also been an incredible engine for growth throughout the U.S. economy as well,” said National Corn Growers Association Ethanol Committee Chair Jeff Sandborn, a farmer from Portland, Michigan. “This study offers the quantifiable data to clearly demonstrate the importance of today’s ethanol industry for all Americans. At NCGA, we work constantly to defend policies important to farmers and ethanol producers alike, such as the RFS, and to find ways to further drive demand in the future. Certainly, concrete evidence such as this helps us to do so.”
According to the study, ethanol industry was responsible for 83,949 direct jobs and 295,265 indirect and induced jobs over the past year. Over that period, it also added $26.7 billion to household incomes, and generated $10.3 billion in taxes, thus further stimulating state and local economies.
The study also demonstrated the importance of ethanol to national and energy security in that it found 515 million barrels of foreign oil were displaced by the 14.3 billion gallons of U.S. ethanol produced in 2014. The monetary value of this comes to nearly $49 billion which stayed in our nation’s economy.
A brief summary of the study’s findings:
- $52.7 billion to America’s gross domestic product
- 83,949 direct jobs and 295,265 indirect and induced jobs
- $26.7 billion to household incomes
- $10.3 billion in federal, state and local taxes
- Displaced 515 million barrels of oil, the equivalent of $49 billion
John Urbanchuk, author of the study and managing partner of ABF Economics, concluded his analysis by noting, “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. 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.”
The full study, prepared on behalf of the Renewable Fuels Association, can be found here.