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Impacts of biodiesel on the Brazilian fuel market

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  • Silva Junior, Daniel

Abstract

This paper investigates market effects of the Brazilian biodiesel law, which made the use of biodiesel, blended with petroleum diesel, mandatory in Brazil. The study estimates the demand curve for diesel fuel (biodiesel and petroleum diesel) and the industry supply curve of biodiesel. These two pieces of information have been used in a static analysis to draw scenarios with different biodiesel mandates. The results show that the current proportion of biodiesel in the diesel mixture (5%) increases consumers' price by 1.7% and decreases the consumption by 1.5% compared to the scenario without biodiesel. Also, an increase in the biodiesel percentage to 10% would raise the price by 3.5% and reduce the consumption by 3%.

Suggested Citation

  • Silva Junior, Daniel, 2013. "Impacts of biodiesel on the Brazilian fuel market," Energy Economics, Elsevier, vol. 36(C), pages 666-675.
    • Handle: RePEc:eee:eneeco:v:36:y:2013:i:c:p:666-675
    DOI: 10.1016/j.eneco.2012.11.008
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    Cited by:

    1. Chamkalani, A. & Zendehboudi, S. & Rezaei, N. & Hawboldt, K., 2020. "A critical review on life cycle analysis of algae biodiesel: current challenges and future prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    2. Dutra, Renato Cabral Dias & Carpio, Lucio Guido Tapia, 2021. "Biodiesel auctions in Brazil: Symmetry of bids and informational paradigm," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    3. Rafael Henrique Mainardes Ferreira & Claudia Tania Picinin, 2018. "Bibliometric analysis for characterization of oil production in Brazilian territory," Scientometrics, Springer;Akadémiai Kiadó, vol. 116(3), pages 1945-1974, September.

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