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Journal of Agricultural & Food Industrial Organization

Ed. by Azzam, Azzeddine

2 Issues per year


CiteScore 2017: 0.76

SCImago Journal Rank (SJR) 2017: 0.325
Source Normalized Impact per Paper (SNIP) 2017: 0.402

Online
ISSN
1542-0485
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Scale and Transaction Costs in the U.S. Biopower Industry

Ira J Altman / Peter G. Klein / Thomas G. Johnson
Published Online: 2007-12-18 | DOI: https://doi.org/10.2202/1542-0485.1170

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.

Keywords: organizational choice; transaction costs; scale; biopower industry

About the article

Published Online: 2007-12-18


Citation Information: Journal of Agricultural & Food Industrial Organization, Volume 5, Issue 1, ISSN (Online) 1542-0485, DOI: https://doi.org/10.2202/1542-0485.1170.

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[1]
Ira Altman, Jason Bergtold, Dwight R. Sanders, and Thomas G. Johnson
Agribusiness, 2012, Page n/a

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