Does the Shale Gas Revolution Mean the End of Biofuels?
|Author:||Bc. Jakub Kouřílek|
|Year:||2015 - summer|
|Leaders:|| prof. Ing. Karel Janda M.A., Dr., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||World effort to reduce climate changes drives demand for more environmentally
friendly alternative fuels, since transport emits quarter of total greenhouse
gas emissions. For many years biofuels were main mean for achieving
more green transport. Nevertheless, there are rising concerns that some of
biofuels have negative environmental and social impacts sometimes worse
than fossil fuels. This work links European Union’s biofuels development
with expansion of natural gas caused by exploitation from shale formations.
We examine relationship between biodiesel, natural gas and relevant commodities
by using the price transmission framework. Results indicate weak
slowly increasing negative price relation between biodiesel and natural gas.
Our work finds favourable legislation for future application of natural gas
vehicles. Nonetheless, we conclude that the expansion will not be driven by
exploitation of shale gas at European Union territory