How Biofuels Benefit the Economy Research Paper

How Biofuels Benefit the Economy - Research Paper Example Production of biofuel is an advantage to the economy because it helps the economy in different aspects (Environmental and Water Resources Institute U.S. 3). It is a cleaner source of energy compared to the other sources for instance the petroleum sources. This indicates that the environmental concerns are taken care of and the health of individuals is not at risk. Many people spend a lot of their income by paying for their health facilities but, with the use of biofuels, one is able to save the amount of money he or she earns. The saved funds can be channeled to other uses among them investment, a situation that would have otherwise not occurred. Health care provisions to cater for complexities that result from forms of energy used are expensive. On the same note, meeting health care insurance premiums may prove difficult because the insurance firms often deny covers to people with pre-existing conditions. Making the right choices of energy; in this case biofuels rules out such occur rences. When compared to other conventional sources of energy, biofuels are the best because they offer cleaner gases than the rest (Yeo 52). The economic benefits of biofuels fall into two categories. They are the benefits which outsmart the fuel production by fossil fuels and the economic benefits that establish a viable and sustainable biofuels industry which uplifts the developing countries (Worldwatch Institute 132). Whichever the case, the benefits of biofuels in the economy cannot be refuted. It is important to note that challenges and opposition have been raised against the use if this type of fuel. However, the central point of argument revolves around what biofuels will do for the economy. The economy is not a stand-alone aspect in the context of this analysis. Both social and environmental aspects fall into place in the evaluation of the benefits of biofuels. The government also must be accounted for, given the fact that it plays a central role in determining the pace of economic growth and development. All these factors are therefore intertwined, and the benefits of biofuels to the economy are felt across all the aspects identified. Energy security for countries like the United States which uses a lot of energy annually is safe from expensive purchase of oil as an energy source from other foreign companies. This is because reliance on imports makes the country suffer a great deal of its income by purchasing a commodity they can produce, given the resources available in the country. The economy of the country hence preserved for taking care of other concerns in the country (Keystone BioFuels Inc.). What this means for an economy that uses biofuels is that, domestic capacity utilization is maximized, thereby triggering high economic performance. Resource allocation to the energy sector is undercut, allowing for increased allocations to other sectors of the economy that previously received lesser allocations in a bid to finance fuel importation. First generation biofuels save up to sixty percent of carbon emissions, which are a, risk to the environment and health art large. The second generation biofuels save up to eighty percent of carbon emissions, which reduces the, health risks by a great percentage. Economy benefits greatly from the biofuels because they create an expansion of more job opportunities (Environmental and Water Resources Institute U.S. 3). Due to this technological advancement country has wanted to