IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Is there a causal relation between ethanol innovation and the market characteristics of fuels in Brazil?

  • de Freitas, Luciano Charlita
  • Kaneko, Shinji

This study examines whether a causal relation exists between ethanol related innovation and fuel market variables in Brazil. Patent counts were used as proxy for innovation and assessed market variables include ethanol consumption and price, and gasoline price. The study refers to the period 1975–2008. Empirical evidence is formulated with an Autoregressive Distributed Lag (ARDL) model for cointegration and the causality is examined with a multivariate Granger causality test. The results demonstrate a potential causal relation between ethanol innovation and ethanol consumption, evidencing a unidirectional relation from ethanol consumption to patent registers in the studied period. Such a relation indicates that increments in ethanol consumption can potentially stimulate innovation in the sector. Moreover, the ethanol price and the cross-effect of gasoline price have an indirect effect on ethanol innovation. Several questions are raised regarding the yet to be determined factors driving innovation in the sector. Further studies focused on nonmarket aspects, including policy factors, subsidies and international technology spillovers, would potentially elucidate several unanswered questions concerning ethanol innovation in Brazil.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 74 (2012)
Issue (Month): C ()
Pages: 161-168

in new window

Handle: RePEc:eee:ecolec:v:74:y:2012:i:c:p:161-168
Contact details of provider: Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:74:y:2012:i:c:p:161-168. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.