Natural gas as a vehicular fuel in Brazil: Barriers and lessons to learn

Luis Guilherme Larizzatti Zacharias, Ana Clara Antunes Costa de Andrade, Xavier Guichet, Dominique Mouette and Drielli Peyerl

Energy Policy, 2022, vol. 167, issue C

Abstract: This study aims to analyze the adoption and growth of light-duty natural gas vehicles in Brazil and observe how state incentives and taxes impacted the development of this market at the state level. Brazil's light-duty natural gas vehicles market has slowed its growth considerably since the states with the largest share in the country, Rio de Janeiro and São Paulo, have diverged in the progress of natural gas vehicles. To clarify what led to this scenario, we selected and explored seven parameters: i) availability of natural gas distribution network; ii) the number of certified conversion garages; iii) historic compressed natural gas fuel prices; iv) state value-added taxes; v) motor vehicle property taxes; vi) vehicle-to-refueling-station index and; vii) payback period. In conclusion, it was found that state market incentives are fundamental for the continuous development of alternative fuels such as natural gas to the already established liquid fuels in the country. In Rio de Janeiro, the advantages obtained through tax incentives to compressed natural gas and motor vehicle property taxes are crucial to decrease payback time and strengthen the price of natural gas. Otherwise, in the state of São Paulo, the lowest state value-added tax levied on hydrated ethanol and, consequently, the smallest price difference between fuels hinders the development of the compressed natural gas market.

Keywords: Light-duty natural gas vehicle; Compressed natural gas; Transport; Tax policies; Brazil (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421522002816
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:167:y:2022:i:c:s0301421522002816

DOI: 10.1016/j.enpol.2022.113056

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().