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Ethanol is created when corn is fermented and is diluted with gasoline. ItÆs a popular fuel source today and has been used for years. Henry Ford first designed his Model T in 1908, fully expecting ethanol to be the major fuel used. In fact, the fuel caught on in the early years. In the early 1920's the Standard Oil Company sold ethanol in the Baltimore area to test the fuel.
When they tested ethanol, they found that it was quite expensive to produce, because the price of corn was so steep. ThatÆs why it wasnÆt salable. But it was brought back in the late 1970's when a Middle Eastern oil shortage made ethanol cheaper than regular gasoline. ItÆs still used in several midwestern states.
Ethanol is often a good substitute for gasoline in times when the supply of crude oil is low. Less oil needs to be imported when youÆre using ethanol, and more natural substances are used. The main downside to using ethanol is that it is using a food supply as a fuel rather than as food. This can be dangerous with the diminishing number of American farmers and the number of starving people across the globe.

How does ethanol affect the quality of gas?
Studies have shown that ethanol actually improves the quality of air in major cities. With ethanol, fewer toxins are released into the air. Because ethanol is diluted gasoline, there is less crude oil exhaust shot into the sky. In addition, ethanol alleviates the smog problems in some major American cities like weÆve never seen before. Ethanol is a fairly natural product, utilizing corn products, sunshine, water flow, and wind in order to produce an effective fuel. It reduces the amount of pollution we shoot into our atmosphere.

How does ethanol affect gas prices?
The price of ethanol depends on the price of gasoline, the price of corn, and the price of the labor and equipment used to mix the two substances. When the price of producing corn and ethanol is higher than the normal price of producing gasoline, youÆll pay more for ethanol than you will for normal gasoline. However, if the price of producing ethanol remains low, it can prove beneficial for motoristsÆ pocketbooks when oil production is also low, as ethanol prices would be significantly less expensive.