Estimating the Relationship between Food, Fuel and Biofuel Prices
|Author:||Bc. Matěj Novotný|
|Year:||2019 - summer|
|Leaders:|| prof. Ing. Karel Janda M.A., Dr., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||Although biofuels have drawn the attention of researchers since its boom, which
took place 20 years ago, doubts about benefits which their usage brings in
the academic debate. This thesis joins the debate that discusses the impact of
biofuels on food prices. The prices of 38 commodities and assets that are related
to the biofuels are examined under Minimum Spanning Tree and Hierarchical
Tree methods over the years between 2003-2019. The time span is divided
into 4 periods, that responds to the development of world food prices. The
results show that the relationship between biofuels and their feedstock depends
on the overall level of food prices. In the case of higher food prices, the link
between feedstock and biofuel is stronger and therefore the price transmission is
more likely to happen. With lower food prices, this link is significantly weaker.
Furthermore, the development of world food prices does not follow the trend
of increasing biofuels production as food prices have become stable in recent
periods. Therefore, this thesis does not support the claim that biofuels cause
higher prices of food.