Transaction Networks and Institutional Change in Brazilian Sugarcane Agroindustry

The production of sugar and its derivatives (such as ethanol and bioenergy) is one of the oldest economic activities in the world and has undergone profound transformations over time. Understanding these shifts—most notably, the contemporary transition from a food-producing industry to an energy-producing going concern—requires an institutional analysis attentive to the sector’s structuring elements. This article develops and applies an original institutionalist structure, the Transaction Network Analysis, inspired by John R. Commons’ institutional theory, to analyze the historical evolution of Brazil’s sugarcane agroindustry from 1930 to the present. The framework focuses on the nature and dynamics of transactions, introducing the concepts of transactional networks, perimeters, and types as analytical tools. Through this structure, we identify two major historical phases in the evolution of the sugarcane industry formed by distinct transactional configurations: a regulatory network (1930–1990) characterized by distributive transactions, and a deregulated network (1990–present) dominated by bargaining transactions. This shift of transactional logic is key to understanding the sector’s transformation over time. Finally, in addition to reconstructing the historical trajectory of sugarcane production in Brazil, the article proposes a conceptual framework for analyzing institutional change, highlighting the integration of evolving transactional patterns and the role of state-mediated coordination.