Oregon Public Broadcasting

A new Oregon State University study questions recent investments and mandates to put more corn or canola-based fuels into gas tanks. Rob Manning reports.

Oregon and Portland officials have approved mandates for biodiesel and ethanol recently, arguing that the moves can help reduce greenhouse gas emissions and dependence on foreign oil.

But Oregon State University economist Bill Jaeger, has published a study arguing that biodiesel and ethanol rely too much on fossil fuels and tax subsidies to get to the pump. He says other methods are more cost-effective.

Bill Jaeger: "Compared to raising fuel economy standards, or a gas tax, we found biofuels in terms of achieving energy independence, the cost to be ten, up to 28 times more expensive than these other approaches."

Jaeger says that while state lawmakers don't have jurisdiction over fuel economy, they could focus tax incentives on fuel-efficient cars.

The governor's office says that biodiesel and ethanol are not the whole solution and that other renewable energy steps will also help over time.