COVID-19

Renewable energy - time-frequency dynamics of biofuels

Crawford School of Public Policy | Centre for Applied Macroeconomic Analysis

Event details

Seminar

Date & time

Thursday 21 May 2015
12.00pm–1.00pm

Venue

Seminar Room 2, Level 1, JG Crawford Building 132, Lennox Crossing, ANU

Speaker

Professor Karel Janda, Charles University and University of Economics in Prague.

Contacts

Rossana Bastos
6125 8108

In this talk Karel Janda will provide an overview of his recent paper ‘Renewable Energy - Time-Frequency Dynamics of Biofuels’.

In this paper the author uses the wavelet coherence methodology to investigate relations between prices of ethanol and biodiesel and its feedstocks. His continuous wavelet framework allows for discovering price connections and their evolution in both time and frequency domain in the most important ethanol and biodiesel markets – EU, Brazil and the USA. For ethanol, the author shows that the long-run relationship between prices of ethanol and corn (in USA) or sugar (in Brazil) is positive, strong and stable in time. Importantly, he shows that the prices of feedstock lead the prices of ethanol and not the other way around. The price lead of feedstock is documented for both short and long run horizons. His qualitative results hold true even when the influence of crude oil prices is accounted for by utilising partial wavelet coherence approach. Karel contributes to the discussion about the role of biofuels in the increase of agricultural commodity prices, especially around 2008 and 2011. His results indicate that high sugarcane and corn harvests in 2013 and 2014 should have a significant long run impact on the economics of biofuels.

Karel Janda graduated from University of Iowa, PhD, 2003. Currently, he is a professor at Department of Banking and Insurance, Faculty of Finance and Accounting, University of Economics, Prague and Chairman of Department of Microeconomics and Mathematical Methods, Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague. He is a holder of RWE chair in Economics at Institute of Economic Studies, Charles University. His visiting faculty appointments included Toulouse School of Economics, The Australian National University, University of California, Berkeley, University of Cambridge and others. His research is concerned with microeconomics and applied econometrics in the areas of microeconomics of banking, natural resources and agricultural economics and economics of transition. He is currently working on economics of renewable energy resources, especially biofuels and photovoltaics, and on social costs of carbon. He coordinates EU 7FP project ECOCEP on economic modeling for climate-energy policy (2014-2017, www.ecocep.cuni.cz). He regularly teaches graduate classes in microeconomic theory, financial contracting and microeconomics of banking and undergraduate classes in finance and banking.

The CAMA Macroeconomics Brown Bag Seminars offer CAMA speakers, in particular PhD students, an opportunity to present their work in progress in front of their peers, and reputable visitors to showcase their work.

Updated:  29 March 2024/Responsible Officer:  Crawford Engagement/Page Contact:  CAP Web Team