IDEAS home Printed from https://ideas.repec.org/a/ags/revi24/341071.html
   My bibliography  Save this article

Institutional arrangements in the commercialization of electric energy from sugarcane biomass in the Brazilian midwest

Author

Listed:
  • Garcia, Marli da Silva
  • Vilpoux, Olivier François
  • Cereda, Marney Pascoli

Abstract

Reducing the use of fossil fuels and mitigating environmental impacts justifies the generation of electricity from renewable sources. In Brazil, sugarcane is the biomass that most generates electricity, and Mato Grosso do Sul state accounts for 10% of this electricity. Production can be traded in the spot market, long-term contracts regulated by the Federal Government, or free contracts between companies. Despite these options, only half of the sugarcane industries in Mato Grosso do Sul commercialize electricity. Based on Transaction cost economics, the objective of this work is to identify the most suitable governance structures used in the commercialization of electricity produced by the sugarcane plants in the state of Mato Grosso do Sul and to evaluate the institutional environment impact on these structures. A questionnaire was applied to all sugarcane companies in the state, and interviews were conducted with specialists and regulatory agencies. The results indicate that the widespread use of plural forms of governance for the commercialization of energy reduces the risks linked to a weak institutional environment and judicialization of the spot market. The preference for free contracts and a large number of short-term transactions indicate a lack of trust in the existing institutions, with the need to strengthen independent regulatory agencies.

Suggested Citation

  • Garcia, Marli da Silva & Vilpoux, Olivier François & Cereda, Marney Pascoli, 2021. "Institutional arrangements in the commercialization of electric energy from sugarcane biomass in the Brazilian midwest," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 59(3), January.
    • Handle: RePEc:ags:revi24:341071
    DOI: 10.22004/ag.econ.341071
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/341071/files/Marli%20da%20Silva%20Garcia.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.341071?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nepal, Rabindra & Menezes, Flavio & Jamasb, Tooraj, 2014. "Network regulation and regulatory institutional reform: Revisiting the case of Australia," Energy Policy, Elsevier, vol. 73(C), pages 259-268.
    2. Scaramucci, Jose A. & Perin, Clovis & Pulino, Petronio & Bordoni, Orlando F.J.G. & da Cunha, Marcelo P. & Cortez, Luis A.B., 2006. "Energy from sugarcane bagasse under electricity rationing in Brazil: a computable general equilibrium model," Energy Policy, Elsevier, vol. 34(9), pages 986-992, June.
    3. Mã‰Nard, Claude & Shirley, Mary M., 2014. "The future of new institutional economics: from early intuitions to a new paradigm?," Journal of Institutional Economics, Cambridge University Press, vol. 10(4), pages 541-565, December.
    4. Kira R. Fabrizio, 2013. "The Effect of Regulatory Uncertainty on Investment: Evidence from Renewable Energy Generation," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 29(4), pages 765-798, August.
    5. Williamson, Oliver E, 1999. "Public and Private Bureaucracies: A Transaction Cost Economics Perspective," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 306-342, April.
    6. Vahl, Fabrício Peter & Rüther, Ricardo & Casarotto Filho, Nelson, 2013. "The influence of distributed generation penetration levels on energy markets," Energy Policy, Elsevier, vol. 62(C), pages 226-235.
    7. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
    8. Finon, Dominique & Perez, Yannick, 2007. "The social efficiency of instruments of promotion of renewable energies: A transaction-cost perspective," Ecological Economics, Elsevier, vol. 62(1), pages 77-92, April.
    9. Signorini, Guilherme & Ross, R. Brent & Peterson, H. Christopher, 2015. "Governance strategies and transaction costs in a renovated electricity market," Energy Economics, Elsevier, vol. 52(PA), pages 151-159.
    10. Rego, Erik Eduardo & Parente, Virginia, 2013. "Brazilian experience in electricity auctions: Comparing outcomes from new and old energy auctions as well as the application of the hybrid Anglo-Dutch design," Energy Policy, Elsevier, vol. 55(C), pages 511-520.
    11. Witold J. Henisz & Bennet A. Zelner, 2001. "The Institutional Environment for Telecommunications Investment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(1), pages 123-147, March.
    12. Susan Yuko Higashi & Mayra Batista Bitencourt Fagundes & Silvia Morales de Queiroz Caleman & Leandro Sauer & Maria Sylvia Saes, 2017. "Plural Forms of Governance at Central Supply Markets," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 21(6), pages 743-763.
    13. Paulo Cesar Coutinho & Andre Rossi de Oliveira, 2013. "Trading Forward in the Brazilian Electricity Market," International Journal of Energy Economics and Policy, Econjournals, vol. 3(3), pages 272-287.
    14. Dalbem, Marta Corrêa & Brandão, Luiz Eduardo Teixeira & Gomes, Leonardo Lima, 2014. "Can the regulated market help foster a free market for wind energy in Brazil?," Energy Policy, Elsevier, vol. 66(C), pages 303-311.
    15. Garcia, Marli da Silva & Vilpoux, Olivier François & Cereda, Marney Pascoli, 2018. "Distributed electricity generation from sugarcane for agricultural irrigation: A case study from the midwest region of Brazil," Utilities Policy, Elsevier, vol. 50(C), pages 207-210.
    16. Emmanuel Raynaud & Paula Sarita Bigio Schnaider & Maria Sylvia Macchione Saes, 2019. "Surveying The Economics Of Plural Modes Of Organization," Journal of Economic Surveys, Wiley Blackwell, vol. 33(4), pages 1151-1172, September.
    17. Praetorius, Barbara & Bleyl, Jan W., 2006. "Improving the institutional structures for disseminating energy efficiency in emerging nations: a case study for energy agencies in South Africa," Energy Policy, Elsevier, vol. 34(13), pages 1520-1531, September.
    18. Bocci, E. & Di Carlo, A. & Marcelo, D., 2009. "Power plant perspectives for sugarcane mills," Energy, Elsevier, vol. 34(5), pages 689-698.
    19. Signorini, Guilherme & Ross, R. Brent & Peterson, H. Christopher, 2015. "Historical analysis of institutions and organizations: the case of the Brazilian electricity sector," Journal of Institutional Economics, Cambridge University Press, vol. 11(1), pages 191-212, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andre Luis da Silva Leite & Nei Antonio Nunes, 2020. "Institutional Environment and the Strategies of the Firms of the Brazilian Electricity Industry," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 53-58.
    2. Seokbeom Kwon & Jan Youtie & Alan Porter & Nils Newman, 2024. "How does regulatory uncertainty shape the innovation process? Evidence from the case of nanomedicine," The Journal of Technology Transfer, Springer, vol. 49(1), pages 262-302, February.
    3. Spiller, Pablo T., 2013. "Transaction cost regulation," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 232-242.
    4. André Luis da Silva Leite & Marcus Vinicius Andrade de Lima, 2023. "A GARCH Model to Understand the Volatility of the Electricity Spot Price in Brazil," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 332-338, September.
    5. Mike W. Peng & Joyce C. Wang & Nishant Kathuria & Jia Shen & Miranda J. Welbourne Eleazar, 2023. "Toward an institution-based paradigm," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 353-382, June.
    6. Frolov, Daniil, 2019. "The manifesto of post-institutionalism: institutional complexity research agenda," MPRA Paper 97662, University Library of Munich, Germany.
    7. Daglish, Toby & de Bragança, Gabriel Godofredo Fiuza & Owen, Sally & Romano, Teresa, 2021. "Pricing effects of the electricity market reform in Brazil," Energy Economics, Elsevier, vol. 97(C).
    8. Bayer, Benjamin & Berthold, Lennart & Moreno Rodrigo de Freitas, Bruno, 2018. "The Brazilian experience with auctions for wind power: An assessment of project delays and potential mitigation measures," Energy Policy, Elsevier, vol. 122(C), pages 97-117.
    9. Heikki Marjosola, 2021. "The problem of regulatory arbitrage: A transaction cost economics perspective," Regulation & Governance, John Wiley & Sons, vol. 15(2), pages 388-407, April.
    10. Finon, Dominique & Perez, Yannick, 2007. "The social efficiency of instruments of promotion of renewable energies: A transaction-cost perspective," Ecological Economics, Elsevier, vol. 62(1), pages 77-92, April.
    11. Frolov, Daniil, 2019. "Постинституционализм: Программа Исследований За Пределами Институционального Мейнстрима [Post-institutionalism: research program beyond the institutional mainstream]," MPRA Paper 92328, University Library of Munich, Germany.
    12. Bertrand V. Quélin & Ilze Kivleniece & Sergio Lazzarini, 2017. "Public-Private Collaboration, Hybridity and Social Value: Towards New Theoretical Perspectives," Journal of Management Studies, Wiley Blackwell, vol. 54(6), pages 763-792, September.
    13. Signorini, Guilherme & Ross, R. Brent & Peterson, H. Christopher, 2015. "Governance strategies and transaction costs in a renovated electricity market," Energy Economics, Elsevier, vol. 52(PA), pages 151-159.
    14. Aquila, Giancarlo & Rotela Junior, Paulo & de Oliveira Pamplona, Edson & de Queiroz, Anderson Rodrigo, 2017. "Wind power feasibility analysis under uncertainty in the Brazilian electricity market," Energy Economics, Elsevier, vol. 65(C), pages 127-136.
    15. Joanna Dzionek-Kozlowska & Rafal Matera, 2016. "Institutions Without Culture. A Critique of Acemoglu and Robinson's Theory of Economic Development," Lodz Economics Working Papers 9/2016, University of Lodz, Faculty of Economics and Sociology.
    16. Viana, Alexandre G. & Ramos, Dorel Soares, 2018. "Outcomes from the first large-scale solar PV auction in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 219-228.
    17. Caballero, Gonzalo, 2015. "Community-based forest management institutions in the Galician communal forests: A new institutional approach," Forest Policy and Economics, Elsevier, vol. 50(C), pages 347-356.
    18. Gandhi, Oktoviano & Oshiro, Andre H. & Medeiros Costa, Hirdan Katarina de & Santos, Edmilson M., 2017. "Energy intensity trend explained for Sao Paulo state," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 1046-1054.
    19. Ebers Broughel, Anna, 2019. "Impact of state policies on generating capacity for production of electricity and combined heat and power from forest biomass in the United States," Renewable Energy, Elsevier, vol. 134(C), pages 1163-1172.
    20. Carlo Cambini & Yossi Spiegel, 2016. "Investment and Capital Structure of Partially Private Regulated Firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 25(2), pages 487-515, April.

    More about this item

    Keywords

    Environmental Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:revi24:341071. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/inrapfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.