The demand of hydrated ethanol and its characterization in the brazilian fuel market

Abstract

The aim of this study is characterize the demand for ethanol in the Brazilian fuel market, considering the sectoral elements (economy and market), regarding to the evolution, challenges and new scenarios of the ethanol market. The study was conducted by means of an exploratory methodology, with an analytical approach qualitative, inductive and interpretative, oriented in a cyclic and concomitant process among the literature raised and the data collected from the fuel market. The main object of investigation was the comprehension of the ethanol market in Brazil across the Proálcool (National Program of Alcohol), as well as, its rise and fall, challenges and new scenarios that emerged from the flex fuel vehicle. We found evidences that demonstrate that the fuel demand allowed mutation conditions in the market at various times, since its inception to the present, which began with the economic pressures arising from the volatility of oil prices till the inclusion of flex fuel technology, which redesigned the backdrop of the ethanol market.