E85 pulls up last behind gas, diesel and hybrids in cost-benefit study

November 30, 2007

A new cost-benefit analysis by researcher John Graham at the Pardee Rand Graduate School found that E85 scored the worst among all fuel options.

Diesels performed the best, saving $2300 over a vehicle’s lifetime compared to regular gasoline. Hybrids were a close second, while E85 cost $1600 for fuel over vehicle lifespan. The study’s authors did not disclose the mileage standards used in the study, or the vehicles studied.

GM chairman and chief executive Richard Wagoner predicted that 50% of US cars would be E85 capable by the year 2012 and that the US would overtake Brazil in ethanol production in 2008. Wagoner noted that GM has sold 2.5 million flex-fuel vehicles. GM also was responsible for the E85 Days of Summer campaign promoting E85 vehicles.

Even in Iowa, E85 is tough to find, and the general manager of the East Central Iowa Cooperative said “I don’t think flex-fuel even passes through someone’s head when they are buying a vehicle around here”.Â The sales manager of a Waterloo, IA Chevrolet dealership said that rising flex-fuel vehicle numbers are “mostly a coincidence”.