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Analysis of Hydrous Ethanol Price Competitiveness after the Implementation of the Fossil Fuel Import Price Parity Policy in Brazil

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  • Aloisio S. Nascimento Filho

    (Gestão e Tecnologia Industrial (PPG GETEC), Centro Universitário SENAI CIMATEC, Salvador 41650-010, Brazil
    Núcleo de Pesquisa Aplicada e Inovação (NPAI), Universidade do Estado da Bahia—UNEB, Salvador 41741-020, Brazil)

  • Hugo Saba

    (Núcleo de Pesquisa Aplicada e Inovação (NPAI), Universidade do Estado da Bahia—UNEB, Salvador 41741-020, Brazil
    Modelagem Computacional e Tecnologia Industrial (PPG MCTI), Centro Universitário SENAI CIMATEC, Salvador 41650-010, Brazil
    Departamento de Ciências da Terra, Universidade do Estado da Bahia—UNEB, Salvador 41741-020, Brazil)

  • Rafael G. O. dos Santos

    (Núcleo de Pesquisa Aplicada e Inovação (NPAI), Universidade do Estado da Bahia—UNEB, Salvador 41741-020, Brazil
    Departamento de Desenvolvimento de Produtos, Centro Universitário SENAI CIMATEC, Salvador 41650-010, Brazil)

  • João Gabriel A. Calmon

    (Núcleo de Pesquisa Aplicada e Inovação (NPAI), Universidade do Estado da Bahia—UNEB, Salvador 41741-020, Brazil
    Departamento de Micro Eletrônica, Centro Universitário SENAI CIMATEC, Salvador 41650-010, Brazil)

  • Marcio L. V. Araújo

    (Núcleo de Pesquisa Aplicada e Inovação (NPAI), Universidade do Estado da Bahia—UNEB, Salvador 41741-020, Brazil
    PROFNIT, Instituto Federal da Bahia—IFBA, Salvador 40301-015, Brazil)

  • Eduardo M. F. Jorge

    (Núcleo de Pesquisa Aplicada e Inovação (NPAI), Universidade do Estado da Bahia—UNEB, Salvador 41741-020, Brazil
    Departamento de Ciências da Terra, Universidade do Estado da Bahia—UNEB, Salvador 41741-020, Brazil)

  • Thiago B. Murari

    (Gestão e Tecnologia Industrial (PPG GETEC), Centro Universitário SENAI CIMATEC, Salvador 41650-010, Brazil
    Núcleo de Pesquisa Aplicada e Inovação (NPAI), Universidade do Estado da Bahia—UNEB, Salvador 41741-020, Brazil)

Abstract

Competition is a relevant element in any open economy. Public policies are necessary to induce economic efficiency and to create conditions to preserve or stimulate a competitive environment. This paper aims to assess the competitiveness of hydrous ethanol price in a period of political, social and economic crises, in 15 Brazilian state capitals between the years 2012 and 2019. We compared the ethanol–gasoline price ratio behavior in two different periods, before and after the import parity price policy implemented by Petrobras in 2016. Mann–Whitney and Levene’s tests, two non-parametric statistical methods, were applied to verify significant changes between these periods. The implementation of changes in Petrobras’ pricing policy from 2016 onwards caused a statistically significant increase in the ratio coefficient of variation in two-thirds of the distribution market and more than the half of analyzed retail markets. Second, overall, the cities that showed statistically significant changes in the median and coefficient of variation in the distribution market price ratio were followed by the retail market. Our findings suggest that government interventions in the fuel and byproduct final selling prices to distributors negatively impact competition between companies that are part of the fuel distribution and retail chain, also affecting the sale of biofuels in Brazil and discouraging the initiatives to use renewable fuels to reduce the emission of pollutants.

Suggested Citation

  • Aloisio S. Nascimento Filho & Hugo Saba & Rafael G. O. dos Santos & João Gabriel A. Calmon & Marcio L. V. Araújo & Eduardo M. F. Jorge & Thiago B. Murari, 2021. "Analysis of Hydrous Ethanol Price Competitiveness after the Implementation of the Fossil Fuel Import Price Parity Policy in Brazil," Sustainability, MDPI, vol. 13(17), pages 1-12, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:17:p:9899-:d:628164
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    Cited by:

    1. Rafael Baptista Palazzi & Ata Assaf & Marcelo Cabus Klotzle, 2024. "Dynamic connectedness between energy markets and the Brazilian cash market: An empirical analysis pre‐ and post‐COVID‐19," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 44(1), pages 27-56, January.
    2. Aloisio S. Nascimento Filho & Rafael G. O. dos Santos & João Gabriel A. Calmon & Peterson A. Lobato & Marcelo A. Moret & Thiago B. Murari & Hugo Saba, 2022. "Induction of a Consumption Pattern for Ethanol and Gasoline in Brazil," Sustainability, MDPI, vol. 14(15), pages 1-11, July.
    3. Palazzi, Rafael Baptista & Meira, Erick & Klotzle, Marcelo Cabus, 2022. "The sugar-ethanol-oil nexus in Brazil: Exploring the pass-through of international commodity prices to national fuel prices," Journal of Commodity Markets, Elsevier, vol. 28(C).
    4. Derick David Quintino & Heloisa Lee Burnquist & Paulo Ferreira, 2022. "Relative Prices of Ethanol-Gasoline in the Major Brazilian Capitals: An Analysis to Support Public Policies," Energies, MDPI, vol. 15(13), pages 1-23, June.

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