Price correlation between sugar and biofuels in Brazil

Denisa Sedláková

Diplomová práce

Abstract:

The main aim of this thesis is to examine, whether there is dependence between the price of sugarcane and biofuels in Brazil and how these two variables affect each other. Brazil is a diverse country which holds a high position among exporters, producers and consumers of ethanol. Brazilian ethanol is processed from sugarcane, which is also a very cultivated crop in the country. Brazil annually produces up to 50% of bioethanol produced from sugarcane. The theoretical part describes theories of sugarcane and ethanol influences in Brazil and in the international market as well as the export, import, production, consumption, price development from a given time period and history of both commodities.For the calculation in practical part, it is used two equation econometric model, and based on the output from the mathematical-statistical Ordinary least squares method (OLS), was found out, that sugarcane price is not so much influenced by the ethanol price as the harvested area (0.84%), sugarcane production (2.84%) or crude oil price - global (0.35%). Ethanol price affects the sugarcane price by 0.14%. The second examined variable was ethanol production in Brazil, that is mostly affected by crude oil consumption in Brazil (0.56%), sugarcane price (0.27%) and crude oil price from a very small part (0.094%).

Keywords

sugar beet, sugarcane, biofuels, price

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 28. 3. 2018

Obhajoba závěrečné práce

• Vedoucí: doc. Ing. Mansoor Maitah, Ph.D. Ph.D.

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Magisterský studijní program / obor:
Economics and Management / European Agrarian Diplomacy