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Climate TagsFuel retail
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  • This research paper examines how the adoption of flex-fuel vehicles (bi-fuel cars) influenced price competition between ethanol and gasoline retail markets in the state of Rio de Janeiro, Brazil, between 2002 and 2008. Using a theoretical model and panel data from fuel stations, the authors find that increased flex-fuel penetration reduced retail prices and margins for both fuels, though the effect was more pronounced for ethanol. The study concludes that innovations increasing consumer choice can benefit all consumers, including those who do not adopt the new technology.

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    Themes: energy transitionbiofuelsethanoltransportationfuel retail
    Climate Policy Initiative

    Document type: Research paper

    Regions: Rio de Janeiro
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