ANÁLISE DA DEMANDA DE COMBUSTÍVEIS VEICULARES NO BRASIL ENTRE 2004 E 2014

Igor Gimenes Cesca and Mariana Araújo e Silva Bottrel

Revista de Economia e Agronegócio / Brazilian Review of Economics and Agribusiness, 2016, vol. 14, issue 01-2-3, 28

Abstract: In Brazil, from the 2000s, the sugar-energy industry has grown. Between 2004 and 2009, ethanol sales increased 400%. However, between 2010 and 2014, a crisis settled in the sector, leading to the closure of several plants. Among the causes of the crisis, there was an anti-inflation control in the price of gasoline, which kept prices unchanged, reducing ethanol consumption intensely. This paper aims to verify the elasticity of demand for gasoline C and hydrated ethanol between 2004 and 2014 in Brazil. For this we used the cointegration vector and error correction model. The results indicated that the price elasticity and income elasticity of demand for both fuels are elastic. Therefore, it was concluded that the interference in gasoline prices and innovation of flex-fuel vehicles were the main factors that have altered the elasticity of demand for an elastic behavior in the short term. Not only, but also changes in the ethanol price caused more impact on gasoline demand than changes in the price of gasoline cause demand for ethanol.

Keywords: Agricultural and Food Policy; Environmental Economics and Policy (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ags:rdeeag:253030

DOI: 10.22004/ag.econ.253030

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