Ever wondered where seltzer gets its fizz? Turns out, a lot of the carbon dioxide we drink is a byproduct of the ethanol production process. While Covid-19 kept people at home and out of their cars, demand for gasoline tanked (and with it, demand for ethanol) and carbon dioxide production slowed. The Wall Street Journal reports that prices have increased as a result. One brewer told the Journal his bubble costs have increased by 25 percent in the past month, but he hasn’t yet raised beer prices on his customers. If the production lag persists, though, prices may continue to rise throughout the summer, ultimately pushing up the costs of soda and beer. This could create—sorry—a bubble bubble.
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