Publications

Ethanol has recently been heralded by governments in North America and around the world as an attractive renewable energy source that can reduce our dependence on non-renewable fossil fuels. The Saskatchewan provincial government has suggested that increasing ethanol use will not only reduce greenhouse gas (GHG) emissions, but also increase farm income for primary producers and create jobs in rural areas, thus contributing to a revitalization of the rural economy. Around the world, this kind of widespread enthusiasm has led to many governments mandating the use of ethanol-blended gasoline (EBG), while at the same time providing direct subsidies to ethanol producers. In light of the public resources being committed to the development of this industry, a clear understanding of the objective merits of developing an ethanol industry under these circumstances is required. Our findings suggest that in the foreseeable future the ethanol industry in Saskatchewan will not be viable in the absence of government subsidies and mandated use.  Further, access to export markets seems a high risk basis for industry expansion, while impacts on the livestock industry require careful consideration.  Positive impacts on the rural economy appear limited and occur at very high cost, while environmental benefits are uncertain. Good information and an objective assessment of the facts are necessary for informed decisions around private and public investment in an ethanol industry in Saskatchewan.