The demand for ethanol has increased dramatically because it is increasingly mixed with gasoline to decrease the negative externalities which occur from burning fossil fuels; such as global warming. Last year twenty per cent of the ethanol plants such as corn have been used as fuel, however it is predicted that this year 25% will be used. Such a high demand for ethanol has increased the prices of corn from is $3.20 a bushel, up from $2 last year.
Therefore the negative externalities such as global warming due to consumption of fossil fuels will decrease, however other negative externalities will increase.
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