Ethanol is a possible alternative to fossil fuel because it has a cleaner emission. It means ethanol will give off less pollution in the atmosphere. Another advantage to ethanol is that it has a higher octane rating. This means that ethanol can handle more heat in the engine before knocking occurs. Knock is when fuel is ignited before the spark plug gets to detonate the fuel. The bad side to ethanol is the amount of energy available compared the the same amount of fossil fuel. This means that fuel economy decreases. Cost of producing ethanol is more expensive than fossil fuel as a result, federal tax incentives reduce the price to be able to compete with regular gasoline.
http://auto.howstuffworks.com/how-e85-ethanol-flex-fuel-works.htm/printable
http://www.eere.energy.gov/cleancities/blends/ethanol.html
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