BIODIESEL

ECONOMIC EFFECTS

Not only will using biodiesel effect the environment, but it can also effect the economy. Gas prices are on the rise. Along with rising gas prices, sources of oil are being depeleted. Importing oil is a very costly procedure and much of our nation's money is being spent on that since we are major consumer of petroleum. If the US started to decrease importing of oil and switch to biodiesel, our economy can become more self-sufficient. It's estimated that $57 billion is spent annually on securing foreign oil. With a switch from imported oil to biodiesel, that money could be invested into issues our nation needs to pay attention to.

The value of crops used for biodiesel would rise as more demands will be placed on them. Sequentially, farmers of those crops will see an increase in income. For example, for every 50 million gallons of biodiesel produced, the price of soybeans will be raised 1%.

Since a lot of interest could potentially be invested in the biodiesel industry, it could lead to new companies that specialize in biodiesel. If investment continues from now to about 2015, biodiesel will have created 39,102 new job openings. Below is a chart of the economic benefits of biodiesel.

Another economic effect that isn't really as prominent is that health care costs will lower due to improved air quality. Since biodiesels release much lower emissions than petroleum diesels, air will be cleaner. Amounts of carbon monoxide, which interfere with our ability to breath oxygen, will be lowered significantly. The lower the pollutants the lower the number of people with health complications there will be. This means less money will be spent covering costs of health issues since health will be less of a problem.