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The Effect of Fuel Quality Monitoring and Inspection on the Quality of Brazilian Fuel

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  • Meneses, Marcelo
  • Rocha, Romero

Abstract

This article estimates the effect of fuel quality monitoring and the inspection programs performed by the Brazilian National Agency of Petroleum (Agência Nacional do Petróleo - ANP) on the quality of fuel sold in Brazil. The research mainly uses microdata extracted from the Fuel Quality Monitoring Program (FQMP), which has characteristics of a random experiment, and also the Inspection Program, a typical example of command-and-control regulation. It is verified through an instrumental-variable estimation that monitoring and inspection activities employed by the ANP effectively reduce the likelihood that gas stations will commercialize non-compliance fuels. The results prove that either traditional or alternative deterrent methods can improve the engagement of economic agents concerning fuel quality, increasing the probability that a gas station sells fuels with less polluting potential.

Suggested Citation

  • Meneses, Marcelo & Rocha, Romero, 2025. "The Effect of Fuel Quality Monitoring and Inspection on the Quality of Brazilian Fuel," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 43(1), June.
    • Handle: RePEc:sbe:breart:v:43:y:2025:i:1:a:90919
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