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Light fuel demand and public policies in Brazil, 2003–2013

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  • Luciano Rodrigues
  • Mirian Rumenos Piedade Bacchi

Abstract

The main objective of this article is to evaluate determinants of demand for light fuels in Brazil between 2003 and 2013. Through a vector autoregression analysis, an effort was made to identify and quantify the impact of different economic variables and public policy measures adopted during this period on the surprising increase in energy consumption by Brazil’s light-vehicle fleet. The results suggest that demand for energy by the light-vehicle fleet was influenced by an increase in income, by a decrease in fuel prices associated with a policy designed to prevent increases in the price of gasoline from pushing the inflation rate up, by a higher availability of credit for buying vehicles, and by a drop in the real price of those goods, with emphasis on countercyclical measures to waive the tax on industrialized products levied on new vehicles during economic downturns in the automotive industry.

Suggested Citation

  • Luciano Rodrigues & Mirian Rumenos Piedade Bacchi, 2016. "Light fuel demand and public policies in Brazil, 2003–2013," Applied Economics, Taylor & Francis Journals, vol. 48(54), pages 5300-5313, November.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5300-5313
    DOI: 10.1080/00036846.2016.1176115
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    Cited by:

    1. Capitani, Daniel Henrique Dario & Tonin, Julyerme M. & Cruz, Jose Cesar, 2017. "Integration and hedging efficiency between the Brazilian and the U.S. ethanol markets," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258520, Agricultural and Applied Economics Association.
    2. Machado Neto, Pedro Augusto, 2021. "Why Brazil imports so much corn-based ethanol: The role of Brazilian and American ethanol blending mandates," Renewable and Sustainable Energy Reviews, Elsevier, vol. 152(C).
    3. Huang, Jiangfeng & Khan, Muhammad Tahir & Perecin, Danilo & Coelho, Suani T. & Zhang, Muqing, 2020. "Sugarcane for bioethanol production: Potential of bagasse in Chinese perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).

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