SUMMARY
This study investigates the nexus between consumption of biofuels and economic growth in Brazil during the period of 1990 to 2015. The vector autoregressive (VAR) was applied. The preliminary tests proved the presence of multicollinearity and the existence of unit root in the variables. The results of VAR model indicated the existence of a bidirectional relationship between consumption of biofuels and economic growth, consumption of oil and economic growth, and consumption of biofuels and oil. These results are an opportunity to the policies makers change the energy matrix with the introduction of more renewable energy sources in order to reduce the environmental degradation.