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Please use this identifier to cite or link to this item: http://repositorio.ufba.br/ri/handle/ri/12375

Title: Fuel demand in Brazil in a dynamic panel data approach
Other Titles: Energy Economics
Authors: Santos, Gervásio Ferreira dos
Keywords: Combustível;Política energética;Etanol
Issue Date: 2013
Publisher: Energy Economics
Abstract: The purpose of this paper is to evaluate the sensitivity of fuel consumers regarding price and income, taking recent changes in the Brazilian fuel market into account. In this market, new market rules, energy policy towards fuel diversification and introduction of flex-fuel engines have determined fuel competition among gasoline, ethanol and compressed natural gas. Using a dynamic panel data model, demand equations for these three fuels are econometrically estimated to obtain consumer adjustment coefficients, price, cross-price and income elasticities in the short and long-run. In addition, the effect of the introduction of flex-fuel engines in the market and the rationality of consumers towards efficiency constraints of the engines were tested. Apart from considerable competition, results show that the dynamics of the Brazilian fuel market revolves around ethanol instead of gasoline. While demands for gasoline and natural gas are inelastic to price, demand for ethanol is elastic in Brazil. Furthermore, after the introduction of the flex-fuel technology the sensitivity of consumers to fuel prices changed, and ethanol consumers take efficiency constrains into account when ethanol prices reach the threshold of 70% of gasoline prices.
Description: Texto completo. Acesso restrito. p. 229–240
URI: http://www.repositorio.ufba.br/ri/handle/ri/12375
ISSN: 0140-9883
Appears in Collections:Artigos Publicados em Periódicos (FCE)

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