Ethanol Is It Worth the True Cost - Essay Example

LITERATURE REVIEW Bio-fuels (carbon neutral as long as material is burnt locally) have an important role to play as an answer for global fuel crisis, and in the longer term, ethanol generated from renewable such as fermentation or by using vegetable oils - will be important in overcoming the shortage of finite resources. As it is renewable and environmental-friendly source of energy like Newman (2008, pp 23-25) in his study shows different energy trends, prospects, assets and liabilities in different political systems and regions. Accordingly, the production of fuel from agricultural waste is being described by the previous researchers as the answer to the global dependency on fossil fuels (World Bank 2008). Though many have seen ethanol as a potential long-term solution to global energy concerns (Shimada, 2002), there are numerous shortcomings associated with increased dependency on this energy source (Newman 2008). The current ramifications of a shift to bio-fuel production include a rise in the cost of food production as well as an increase in food shortages in certain parts of the world (World Bank 2008). In a study the researchers, Zeller and Grass (2008) discussed the progress towards substituting renewable energy sources for fossil fuels can contribute to the mitigation of climate change in detail. The extent to which agro-fuels, such as bio-diesel and bio-ethanol, can easily replace fossil fuels, which partly depend on the current competition with the traditional food, feed and fibre sectors, can be substantially reduced. Agro-fuels hold a number of opportunities, but also present are the formidable constraints, especially for poorer, food-deficient developing countries. So in order to address the constraints and capitalize on the opportunities that agro-fuels hold for sustainable development, more investments in socio-economic and technological research, especially for agro-fuels produced from cellulosic materials and agricultural by-products and waste, are required. Agriculture and agriculture-related deforestation also contribute to the emissions of GHG on a substantial scale (World Bank, 2008). Two drivers of global change will have a decisive influence on the future of the world's agriculture and forestry, and therefore on food security, poverty reduction, the environment and economic growth in developing countries. The drivers are on-going climate change and our increasingly pressing need to find renewable and sustainable energy sources. The Stern report states that developing countries situated in the tropics and subtropics will be severely affected by climate change (Stern, 2007). One key causal factor of human-induced global warming is the emission of carbon dioxide and other greenhouse gases (GHGs) from the use of fossil energy. Seeking to address some of these concerns, this analysis will explore whether or not consumers are willing to accept ethanol as a substitute for fossil fuels if they are aware of the true costs of its production. Research on the consumer knowledge of the effects of ethanol is nascent but scholarly analysis of the phenomenon is growing (Shimada, 2002). The research paper will explore the attitudes of consumers to the emergence of fossil fuels on the market through an analysis of published research on the subject. In response to the recent introduction of hydro fuel cell buses in the Swedish capital of Stockholm, Sweeden, Haraldsson et al. and colleagues (2006) undertook the first ever Swedish analysis of the attitudes of individuals toward the implementation of this important phenomenon. Undertaken in 2004, their study used a qualitative analysis to explored and identify the views of two important hydro-fuel cell bus stakeholders in Sweden, passengers and drivers of the vehicles. Beginning their study with a desire to seek first-hand, descriptive accounts of these primary stakeholders, Haraldsson et al. endeavored to explore people's knowledge of, and attitudes towards, The Clean Urban Transport for Europe (CUTE) project, described as "the largest demonstration project of fuel cells and hydrogen today" (Haraldsson et al. 2006). Through in-depth qualitative surveys, the authors found that knowledge of the CUTE project in Stockholm were high at 77% and that 60% of the respondents were the drivers who had positive attitude towards the fuel cell bus project. Understanding that safety is an important concern for both passengers and drivers, the authors found accordingly that people felt that the buses were safe as well as comfortable to ride. The results of the study show that it is a prototype of the next generation fuel cell bus. The sample audience showed positive attitude towards the buses because of the significant weight and noise reduction, fuel efficiency increase and many other improvements. Generally positive towards the CUTE project, little discussion was made of the potential drawbacks to a wholesale switch to ethanol powered buses with the exception of cost. Although passengers were overall quite positive overall about the introduction of fuel cell technology on Stockholm buses, they were not willing to pay a higher fee for the use of buses which were perceived to be more environmentally friendly (Haraldsson et al. 2006). In the United States ethanol-blended gasoline has been less readily available than in other parts of the developed world and Ulmer (2004) undertook a random qualitative survey to understand measured the knowledge and perceptions of ethanol consumers in the state of Oklahoma. Using a random qualitative survey the researchers found that the majority of respondents were overall quite knowledgeable on the subject and a majority felt that the introduction of this energy source in the state would be positive for the environment. A majority of the respondents in Oklahoma also felt that the introduction of this fuel alternative would be positive for the economy and lead to a reduction in the present American dependence on foreign oil. The author believes that if we introduce ethanol-blended gasoline it will have the potential to be of maximum benefit to any country. While an overwhelming majority of consumers said that yes, they would purchase ethanol-based gasoline if it were available in the state, cost was the most important variable for consumers. Accordingly it was determined that cost would be a potential impediment to the successful introduction of ethanol-based gas in the state of Oklahoma (Ulmer 2004). Seeking to address consumers' perceptions as well as attitudes towards renewable energies in Germany, Zoellner 2008 conducted a survey as part of a three-year project. Looking at the perception of individuals and consumers to the introduction of grid-connected larger PV ground-installed systems, biomass plants and wind turbines - all forms of renewable energy - the authors found that "economic consideration of the respective renewable energy system is the strongest predictor for a reported acceptance" (Zoellner 2008 pp 54-60). Accordingly, while there is general support for renewable energy across the studied communities in Germany, questions of cost, as with the Swedish and American studies, appear to trump all other considerations (Zoellner 2008). The introduction of renewable energy is an important avenue for scientific development and growth. With geopolitical ramifications and a variety of potential benefits, the implementation of ethanol remains an issue for debate. In examining this debate Amani Elobeid and Chad Hart (2007) expressed concern for developing countries citing higher agricultural commodity prices would benefit developing and developed countries while adversely affecting the ability of the poor in those developing countries to purchase food. While by seeking to decrease our reliance on fossil fuels, the introduction of bio-fuels and ethanol can also have negative consequences as indicated. In the Swedish study, consumers were positive about the introduction of bio-fuel run buses to the extent that they were perceived as being more comfortable as well as positive for the environment. When it came to paying more for these vehicles however, consumers were less than positive. While American consumers in Okalahoma were happy about saving the environment and decreasing the American reliance on traditional sources of energy in the Middle East, the cost of renewable energy remained an impediment to its wholesale approval. Again, while the German public endorsed the helping the environment, economic considerations remain paramount. As these studies have shown, the global consumer public may not be willing to accept the costs associated with ethanol and other forms of renewable energy. Future research should explore the actual extent to which consumers are willing to sacrifice in order to promote a healthier and more sustainable planet. References: Elobeid, A; Hart, C (2007). Ethanol expansion in the food versus fuel debate. How will developing countries fare Journal of Agricultural & Food Industrial Organization.Vol 5. Haraldsson, K. (2006). A first report on the attitude towards hydrogen fuel cell buses in Stockholm. International Journal of Hydrogen Energy, Vol: 31. Newman. S. (2008). The Final Energy Crisis. 2nd edition. Pluto Press, London. Shimada, Y., Watanabe, Y., Sugihara, A. & Tominaga, Y.,(2002). Enzymatic alcoholysis for biodiesel fuel production and application of the reaction to oil processing. Journal of Molecular Catalysis B: Enzymatic. London (UK). Stern, N. (2007). The Economics of Climate Change: The Stern Review. Cambridge University Press, Cambridge, UK Ulmera, J.D. (2004). Acceptance of ethanol-blended gasoline in Oklahoma. Biomass and Bioenergy, Vol: 27. World Bank. (2008). Biofuels: The Promise and the Risks. World Development Report 2008: Agriculture for Development retrieved from on 12th February 2009. Zeller. M & Grass.M. (2008). Agrofuel boom or doom Opportunities and constraints for agrofuels in developing countries. Quarterly Journal of International Agriculture 47 (2008), No. 4: 285-305. University of Hohenheim, Germany. Zoellner, J. (2008). Public acceptance of renewable energies: Results from case studies in Germany. Energy Policy, Vol: 36I. Read More