cover image: Effective Fuel Price in Reducing Emission Intensity: A Panel Analysis for Brazil

Effective Fuel Price in Reducing Emission Intensity: A Panel Analysis for Brazil

26 Sep 2024

This paper studies how effective an incremental change in the price of fuel, a proxy for fuel carbon tax, is in reducing the emission intensity of road transportation in Brazil through panel analysis at the federative unit level from 2010 to 2020, after offering descriptive insights into Brazil’s automotive fuel market with respect to its products, actors, and external factors. The paper postulates multiple variations of panel analysis models and focuses on dynamic two-way fixed effects models based on statistical results. The findings show that (1) the price of diesel has the most significant and robust impact on reducing emission intensity; (2) the short-run and long-run elasticities of the price of diesel are -0.74 and -2.06, respectively; and (3) both entity and time effects are significant, with the year of 2020 having a consistent effect in reducing emission intensity across the estimated models.
brazil transportation panel analysis fuel prices emission intensity sdg 11 urban development::transport in urban areas sustainable cities and communities rural development::rural roads & transport energy::fuels

Authors

Qu, Ayan

Organizations mentioned

Citation
“ Qu, Ayan . 2024 . Effective Fuel Price in Reducing Emission Intensity: A Panel Analysis for Brazil . © Washington, DC: World Bank . http://hdl.handle.net/10986/42201 License: CC BY 3.0 IGO . ”
Collection(s)
Policy Research Working Papers
DOI
http://dx.doi.org/10.1596/1813-9450-10926
Identifier externaldocumentum
34394638
Identifier internaldocumentum
34394638
Pages
24
Published in
United States of America
Region country
Brazil
Report
WPS10926
Rights
CC BY 3.0 IGO
Rights Holder
World Bank
Rights URI
https://creativecommons.org/licenses/by/3.0/igo/
UNIT
EFI-LCR-MTI-MacroFiscal (ELCMU)
URI
https://hdl.handle.net/10986/42201
date disclosure
2024-09-26
region administrative
Latin America & Caribbean
theme
Public Expenditure Policy,Mitigation,Infrastructure Finance,Investment and Business Climate,Economic Policy,Green Growth,Economic Growth and Planning,Fiscal Policy,Environment and Natural Resource Management,Finance for Development,Finance,Private Sector Development,Fiscal sustainability,Environmental policies and institutions,Climate change,Business Enabling Environment,Adaptation,Tax policy

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