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Why is ethanol used as a fuel?

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Hint: Ethanol is an alcohol. It comes under the category of renewable fuel. It is produced from biomass. It produces a very less amount of greenhouse gases which are harmful to the environment.

Complete answer:
Ethanol is liquid alcohol which contains 2 carbon chains.
It is obtained by fermenting the sugar or other agricultural feedstocks.
Gasohol is sometimes referred to as fuel alcohol, which is distilled and dehydrated to create high-octane, water-free alcohol. By adding a small amount of noxious substances such as gasoline, fuel ethanol is made unfit for drinking.
Ethanol is categorized as renewable fuel because it is obtained from biomass. Ethanol is a more efficient or better fuel than gasoline because it burns more cleanly and completely.
Ethanol produces very less amount of greenhouse gases (GHG) like $C{{O}_{2}},{{N}_{2}}O,{{O}_{3}}$, etc, because the grain or the biomass which is used to make ethanol absorbs carbon dioxide as it grows.
The production of ethanol and the burning of ethanol produce emission, but the net effect has a large reduction in (GHG) as compared with fossil fuels such as gasoline.
Ethanol fuel can contribute to economic growth and job creation, especially in rural areas.
Ethanol is used in small engines and outboard motors which are more susceptible to water contamination, such as chainsaws.
Hence, ethanol is used as fuel.

Note: The performance of the engine is based on the percentage of ethanol in the fuel. Canada is the world’s largest producing ethanol fuel. Research is going on for improving the sustainability of ethanol production.