The main source of feedstock for industrial production of ethanol is (say it quietly) oil. Therefore displacing gasoline by non-bio ethanol will result in a net increase of carbon emissions, and oil use, most likely.
The jury seems to be out as to whether bio-ethanol from crops is a net positive for carbon emissions or oil use. Obviously the processes that turn organic waste into ethanol are off to a better start, but again, you have to be /very/ careful that you aren't wasting more enrgy than you are gaining.
As an example, when you press straw into briquettes to burn domestically, the processing uses about 16% of the energy content of the straw. That would be OK, except you are using diesel or electricity typically, to create the equivalent of firewood. Energetically it would be much better to close the chimney off and switch an electric heater on.
Cheers
Greg Locock
Please see FAQ731-376 for tips on how to make the best use of Eng-Tips.