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 2006 alone, the ethanol industry helped create more than 160,000 jobs in various sectors of the economy, boosted U.S. household income by $6.7 billion through increased economic activity and new jobs, and added $2.7 billion in federal tax revenue and $2.2 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 one-quarter of the entire trade deficit in 2006. The 2006 petroleum deficit was $271 billion, an increase of 18 percent from 2005. Projections show the price of oil will remain strong as petroleum demand continues to increase across growing world economies.
2006 U.S. Trade Deficit
[i] Urbanchuk, J.M., Contribution of the Ethanol Industry to the Economy of the United States (PDF 186 KB); Download Adobe Reader. February 19, 2007. LECG LLC. Prepared for National Corn Grower's Association. (5/1/06).