Relative Prices of Ethanol-Gasoline in the Major Brazilian Capitals: An Analysis to Support Public Policies

The use of biomass as an energy source has advanced in recent decades, given the scientific evidence that it is a solution to environmental problems faced globally. In this context, biofuels derived from have prominent role. Among countries where alternative most promising, Brazil stands out, just behind USA. It is, therefore, necessary assess whether such replacement economically viable. For assessment, behavior relative price bioethanol/gasoline crucial. present work, degree temporal persistence prices, considering existence shocks which they are exposed, evaluated, 15 important Brazilian capitals, via detrended fluctuation analysis (DFA). correlation also evaluated through cross-correlation (DCCA) between fuel prices São Paulo, capital populous state and main producer bioethanol, with capitals 14 states selected for analysis. period takes place 2004 2020. DCCA sliding windows was recently proposed we evaluate DFA dynamically way, this, together extended sample context represents innovations work. We found varies significantly depending on analyzed, means variations localized demand regional stimulus policies. Furthermore, Paulo less intense geographically distant capitals. Such complementary infer how integrated national bioethanol market order support public policies aimed at its consolidation.