Economic Growth
A strong U.S. biomass industry can deliver important economic benefits including trade deficit reduction, job creation, and strengthening of agricultural markets.
Employment
In 2007 alone, the ethanol industry helped create more than 238,000 jobs in all sectors of the economy, boosted U.S. household income by $12.3 billion through increased economic activity and new jobs, and added an estimated $4.6 billion in federal tax revenue and nearly $3.6 billion in state and local tax revenues.[i] Growth of the biomass industry is creating new markets and employment for farmers and foresters, as well as job opportunities in processing and distribution.
U.S. Trade Deficit
Oil imports are the largest component of the U.S. trade deficit, accounting for more than 65 percent of the entire trade deficit in 2007. The production of nearly 6.5 billion gallons of ethanol means that the United States needed to import 228.2 million fewer barrels of oil in 2007 to manufacture gasoline. The value of crude oil displaced by this ethanol production was $16.5 billion.
[i] Urbanchuk, J.M., Contribution of the Ethanol Industry to the Economy of the United States. February 19, 2007. LECG LLC. Prepared for the Renewable Fuels Association. (2/20/08).