Chapter 1-Media Article

"Ontario Approves 5% of Gasoline to Contain Ethanol"
MoneySense-Thursday, October 6, 2005

On Thursday, October 5, 2005 it was approved by the Ontario government that by 2007, 5% of all the gasoline sold in the province is to contain ethanol. Ethanol is often made from corn. Because of this factor, ethanol is a cleaner and cheaper fuel than gasoline. Furthermore, proponents predict that by having 5% of all the gasoline sold in the province to contain ethanol, it is possible that this may eventually lead to a cheaper gas price since more of the fuels from pumps are made up of the less expensive fuel. In this case, it is ethanol. In addition to cheaper gas prices, it is also believed that the expanded use of ethanol in the province will lead to the establishment of new ethanol plants. Therefore, hundreds of new job opportunities will be available.

Relationship to Ch.1-Resource(land), and Scarcity
I think oil prices have dramatically increased in the past several years because of the Iraq war, and other natural disasters. For example, the recent Katrina and Rita Hurrianes definitely adds on as another factor for oil prices to continue to increase. As a result of the dramatic increase in oil prices, the cost of goods and services have been affected and soared to higher prices. Due to the huge increase in oil prices, I think it's a great idea for 5% of all gasoline sold in Ontario to contain ethanol because it is predicted to bring the cost of gasoline prices down. Having the prices of gasoline to be brought down will decrease the price for other products/services because gas/oil is usually required in the production of a service/product (for example, the transport of a product from the factory to a market will require fuel). Furthermore, more job opportunities will be created because of the use of ethanol. Thus I think this approval will be a benefit to many. However, even though the use of ethanol is introduced, there are still many problems unsolved and questions to be asked. Will ethanol really solve the problem to the increase of oil prices? Is oil becoming a scarce resource? And is our everday economics controlled by the price of oil?