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Applying Transaction Cost Economics: A Note on Biomass Supply Chains


  • Altman, Ira J.
  • Sanders, Dwight R.
  • Boessen, Christian R.


Agricultural supply chains, especially those from producer to first handler, are relatively mature institutions. While agricultural economists often observe the evolution of marketing structures in developing nations, it is a rare opportunity to research a developing market within North America. The emerging bioenergy industry—which relies on non-food crops such as straw—provides the potential to research and potentially impact the development of new supply chains. Here, we briefly review the literature related to biomass supply chains, pose a transaction cost approach to studying their development, and then discuss the procurement strategies of an industry leader: the Iogen Corporation.

Suggested Citation

  • Altman, Ira J. & Sanders, Dwight R. & Boessen, Christian R., 2007. "Applying Transaction Cost Economics: A Note on Biomass Supply Chains," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 25(1).
  • Handle: RePEc:ags:jloagb:62290

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    Cited by:

    1. Altman, Ira J. & Boessen, Chris & Sanders, Dwight, 2008. "Contracting for Biomass: Supply Chain Strategies for Renewable Energy," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers.
    2. Altman, Ira J. & Johnson, Thomas G. & Moon, Wanki, . "Organizational Preferences and Producer Characteristics in Biomass Supply Chains," Journal of Agribusiness, Agricultural Economics Association of Georgia.
    3. Mark, Tyler B. & Detre, Joshua D. & Darby, Paul M. & Salassi, Michael E., 2014. "Facilitating small grain production system innovation in the Western Cape, South Africa," International Journal of Agricultural Management, Institute of Agricultural Management;International Farm Management Association, vol. 3(2), January.
    4. Granoszewski, Karol & Spiller, Achim, 2013. "Langfristige Rohstoffsicherung in der Supply Chain Biogas: Status Quo und Potenziale vertraglicher Zusammenarbeit," DARE Discussion Papers 1303, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    5. Moncada, J.A. & Lukszo, Z. & Junginger, M. & Faaij, A. & Weijnen, M., 2017. "A conceptual framework for the analysis of the effect of institutions on biofuel supply chains," Applied Energy, Elsevier, vol. 185(P1), pages 895-915.
    6. Ebadian, Mahmood & Sowlati, Taraneh & Sokhansanj, Shahab & Townley-Smith, Lawrence & Stumborg, Mark, 2013. "Modeling and analysing storage systems in agricultural biomass supply chain for cellulosic ethanol production," Applied Energy, Elsevier, vol. 102(C), pages 840-849.
    7. Altman, Ira & Bergtold, Jason & Sanders, Dwight & Johnson, Tom, 2015. "Willingness to supply biomass for bioenergy production: A random parameter truncated analysis," Energy Economics, Elsevier, vol. 47(C), pages 1-10.
    8. Altman, Ira J. & Johnson, Thomas G. & Moon, Wanki, 2008. "Producer Preferences and Characteristics in Biomass Supply Chains," WERA-72 Annual Meeting, June 18-20, 2008, Santa Clara, California 93420, WERA-72 (formerly WCC-72): Western Education\Extension and Research Activities Committee on Agribusiness.


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