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.
Authors
- 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
Files
Table of Contents
- I. Introduction 4
- Figure 1 Map 1 4
- II. Stylized Facts of Brazils Fuel Market for Transportation 6
- II.1. Products Volumes and Prices 6
- Table 1 6
- Figure 2 7
- Figure 3 7
- II.2. Actors Producers and Consumers 8
- II.3. External Factors Technologies and Policies 9
- II.4. Target Emission Intensity 10
- Figure 4 10
- III. Literature Review 11
- IV. Data and Metadata 12
- Fuel prices 12
- GDP 12
- V. Empirical Strategy 13
- V.1. Summary Statistics 13
- Table 2 13
- V.2. Panel Regression 14
- Figure 14
- VI. Results and Discussion 17
- VI.1. Model Selection 17
- VI.2. Insights 17
- Table 3 Table 4 17
- Table 5 18
- Figure 6 18
- Table 6 18
- VII. Conclusion 22
- References 23
- European Economic Review Econometric Analysis of Panel Data 23
- Energy Policy 23
- Annual International Association for Energy Economics Conference 32. San Francisco 23
- Scientific data 23
- Environment Development and Sustainability 23
- Energy 23
- Environmental Research Letters 23
- Econometrica 24
- Washington DC World Resources Institute Washington D.C. USA 24
- Journal of Economic Surveys 24
- Atmospheric Pollution Research 24
- Fiscal Policy to Mitigate Climate Change. 24
- Journal of environmental economics and management 24
- Getting Energy Prices Right From Principal to Practice. 24
- Fiscal Policies for Development and Climate Action International Development in Focus 24
- Energy Economics 24
- International Journal of Energy Economics and Policy 24
