Induction of a Consumption Pattern for Ethanol and Gasoline in Brazil

ABSTRACT

Historically, carbon dioxide emissions from transport have been a globally discussed and analyzed problem. The adoption of flex fuel vehicles designed to run ethanol–gasoline blends is important to mitigate these emissions. The main purpose of this paper is to analyze the impact of the ethanol–gasoline price ratio on different vehicle models, and discuss the opportunities to increase ethanol consumption from this perspective. Our analysis shows that the use of a unique fuel economy ratio for all flex–fuel vehicles in the country significantly reduces the opportunity of some customers to purchase hydrous ethanol. The paper also discusses possible actions to provide adequate information that may increase the possibility of fuelling vehicles with a high-level ethanol blend.