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Institutional arrangements in the emerging biodiesel industry: Case studies from Minas Gerais—Brazil

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  • Watanabe, Kassia
  • Bijman, Jos
  • Slingerland, Maja

Abstract

Connecting (small) family farmers to the emerging biodiesel industry requires careful design of the institutional arrangements between the producers of oil crops and the processing companies. According to institutional economics theory, the design of effective and efficient arrangements depends on production and transaction characteristics, the institutional environment, and the organizational environment supporting the transaction between producers and the industry. This paper presents a comparative study on two cases in the feedstock-for-biodiesel industry in the state of Minas Gerais, Brazil. The two case studies represent the production and transaction system of soybeans (Glycine max L. Merrill) and castor beans (Ricinus communis L.). Important elements of effective and efficient institutional arrangements are farmer collective action, availability of technical and financial support, and farmer experience with particular crops.

Suggested Citation

  • Watanabe, Kassia & Bijman, Jos & Slingerland, Maja, 2012. "Institutional arrangements in the emerging biodiesel industry: Case studies from Minas Gerais—Brazil," Energy Policy, Elsevier, vol. 40(C), pages 381-389.
    • Handle: RePEc:eee:enepol:v:40:y:2012:i:c:p:381-389
    DOI: 10.1016/j.enpol.2011.10.023
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    1. Lamas, Wendell de Queiroz & Giacaglia, Giorgio Eugenio Oscare, 2013. "The Brazilian energy matrix: Evolution analysis and its impact on farming," Energy Policy, Elsevier, vol. 63(C), pages 321-327.
    2. César, Aldara da Silva & Batalha, Mário Otávio & Zopelari, André Luiz Miranda Silva, 2013. "Oil palm biodiesel: Brazil's main challenges," Energy, Elsevier, vol. 60(C), pages 485-491.
    3. Chi, Cheryl S.F. & Chen, Ling, 2012. "The sources of divergent practices in China's nuclear power sector," Energy Policy, Elsevier, vol. 48(C), pages 348-357.
    4. Sarah L. Stattman & Aarti Gupta, 2015. "Negotiating Authority in Global Biofuel Governance: Brazil and the EU in the WTO," Global Environmental Politics, MIT Press, vol. 15(1), pages 41-59, February.
    5. Conejero, Marco Antonio & César, Aldara Da Silva & Batista, Angelita Pereira, 2017. "The organizational arrangement of castor bean family farmers promoted by the Brazilian Biodiesel Program: A competitiveness analysis," Energy Policy, Elsevier, vol. 110(C), pages 461-470.
    6. Stattman, Sarah L. & Hospes, Otto & Mol, Arthur P.J., 2013. "Governing biofuels in Brazil: A comparison of ethanol and biodiesel policies," Energy Policy, Elsevier, vol. 61(C), pages 22-30.
    7. Lucas Oliveira de Sousa & Marcelo Dias Paes Ferreira & Marcus Mergenthaler, 2018. "Agri-Food Chain Establishment as a Means to Increase Sustainability in Food Systems: Lessons from Sunflower in Brazil," Sustainability, MDPI, vol. 10(7), pages 1-17, June.
    8. César, Aldara da Silva & Batalha, Mário Otávio, 2013. "Brazilian biodiesel: The case of the palm's social projects," Energy Policy, Elsevier, vol. 56(C), pages 165-174.
    9. Leite, João Guilherme Dal Belo & Silva, João Vasco & van Ittersum, Martin K., 2014. "Integrated assessment of biodiesel policies aimed at family farms in Brazil," Agricultural Systems, Elsevier, vol. 131(C), pages 64-76.
    10. Florin, Madeleine J. & van Ittersum, Martin K. & van de Ven, Gerrie W.J., 2013. "Family farmers and biodiesel production: Systems thinking and multi-level decisions in Northern Minas Gerais, Brazil," Agricultural Systems, Elsevier, vol. 121(C), pages 81-95.

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