IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Scale and Transaction Costs in the U.S. Biopower Industry

  • Altman Ira J

    (Southern Illinois University — Carbondale)

  • Klein Peter G.

    (University of Missouri — Columbia)

  • Johnson Thomas G.

    (University of Missouri — Columbia)

With increasing interest in renewable energy from agriculture, including biopower and cellulose ethanol, there is a need for better understanding of the economic organization of this emerging industry. Study of the organization of the biopower industry represents an under-researched area and a new application of transaction cost theory to an emerging industry.Refinement of the theory can also result from challenging applications. This article provides an application of transaction cost economics to the existing United States biopower industry while challenging the empirical convention of excluding production cost variables from transaction cost analysis. Utilizing survey data from 53 biopower generators we study the relationship between physical asset specificity, site specificity, and scale in explaining firms' decisions to procure inputs internally, externally, or to use both methods. Consistent with transaction cost theory, both site specificity and scale are good predictors of organizational form. Given this evidence, this article reconsiders the impact of scale and transaction costs on the choice of organizational from.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.degruyter.com/view/j/jafio.2007.5.1/jafio.2007.5.1.1170/jafio.2007.5.1.1170.xml?format=INT
Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by De Gruyter in its journal Journal of Agricultural & Food Industrial Organization.

Volume (Year): 5 (2007)
Issue (Month): 1 (December)
Pages: 1-19

as
in new window

Handle: RePEc:bpj:bjafio:v:5:y:2007:i:1:n:10
Contact details of provider: Web page: http://www.degruyter.com

Order Information: Web: http://www.degruyter.com/view/j/jafio

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:bpj:bjafio:v:5:y:2007:i:1:n:10. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.