Alternative fuels and the environment

A new analysis by a team of Oregon State University economists concludes that biofuels offer only marginal progress toward energy independence and reduction of greenhouse gases and do so at a much higher cost than other alternatives.

The study found that the "net energy" from biofuels - the amount of energy in the end product after subtracting the amount of energy used to produce and distribute it - is as low as 20 percent for corn-based ethanol. That compares with 75 percent for standard gasoline.

This is not to say alternative fuels aren't worth pursuing. But if you're counting on them to reduce greenhouse gas emissions, the money spend developing them might have more of an effect elsewhere.

Also, although each of the three types of biofuels studied would help reduce greenhouse gas emissions, the reduction would be as much as 200 times more expensive than other options, such as improving gas mileage or establishing a carbon tax.