Working Paper # 0093 Is Arbitrage Tying the Price of Ethanol to that of Gasoline ? Evidence from the Uptake of Flexible-Fuel Technology

@inproceedings{Salvo2007WorkingP,
  title={Working Paper # 0093 Is Arbitrage Tying the Price of Ethanol to that of Gasoline ? Evidence from the Uptake of Flexible-Fuel Technology},
  author={Alberto Salvo and Northwestern Cristian Huse and Sergio Goldbaum Getulio Vargas Fernanda Lima},
  year={2007}
}
  • Alberto Salvo, Northwestern Cristian Huse, Sergio Goldbaum Getulio Vargas Fernanda Lima
  • Published 2007
As much of the world goes searching for alternative sources of energy to oil, Brazil's three-decade experience in developing a successful substitute for gasoline merits attention. Brazil is the only sizable economy to date to have developed a ubiquitously distributed alternative to oil-based fuels in road transportation: ethanol from sugarcane. Perhaps unsurprisingly, the uptake of flexible-fuel (dual-fuel) vehicle technology has been tremendous. We provide a stylized model of the vertical… CONTINUE READING