Fuel prices connectedness across Brazilian capitals: The case of ethanol and gasoline

Benjamin Miranda Tabak, Igor Bettanin Dalla Riva e Silva, Derick Quintino and Thiago Silva ()

Renewable and Sustainable Energy Reviews, 2025, vol. 210, issue C

Abstract: This work analyzes the volatility connectedness of the prices of ethanol and gasoline sold to consumers in fifteen Brazilian capitals. Our data cover the period from 2012 to 2022 and contains several different moments in the dynamics of domestic prices, such as changes in tax policy prices, the crises of covid-19, and the war in Ukraine. The results suggest that fuel prices in the capitals are connected. Gasoline prices substantially affect ethanol prices, indicating that fossil fuel is still stronger in price formation than fuel of renewable origin. The shocks are asymmetric. Price increases in one location lead to increases in others relatively quickly. Price reductions do not propagate at the same speed or intensity.

Keywords: Energy; Retail fuel prices; Ethanol; Gasoline; Renewable energy; Renewable fuel; Sustainability; Spillover; Connectedness; Brazilian fuel market 6.491 words (search for similar items in EconPapers)
JEL-codes: C58 F10 F51 G14 G15 H56 Q02 R10 Z10 (search for similar items in EconPapers)
Date: 2025
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Citations: View citations in EconPapers (1)

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DOI: 10.1016/j.rser.2024.115148

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