Contracts in biodiesel agrisystem: analysis of regulation effects in biodiesel agrisystem

• Grant number: 09/53706-2
• Support Opportunities: Regular Research Grants
• Start date: February 01, 2010
• End date: January 31, 2011
• Field of knowledge: Applied Social Sciences - Economics - Agrarian and Natural Resource Economics
• Principal Investigator: Decio Zylbersztajn
• Grantee: Decio Zylbersztajn
• Host Institution: Faculdade de Economia, Administração e Contabilidade (FEA). Universidade de São Paulo (USP). São Paulo , SP, Brazil

Abstract

The objective of this research project is to assess the effectiveness of the regulatory model of the biodiesel SAG, given the government's objective of developing castor beans sub-SAG and the spontaneous expansion of soybeans sub-SAG. The research hypotheses were built on Transaction Costs Economics and Resource Based View, based on the idea that the result of the formation of a SAG is related to the learning process of the agents, which implies different transaction costs over time. This study proposes three hypotheses: I - As greater is the farmer's previous experience in cultivating a product, more we can expect the success in the development of a sub-SAG. II - In the absence of state incentives, the industry would prefer to transact in the soybeans sub-SAG. Ill - Agents involved in biodiesel SAG would seek alternative mechanisms to reduce costs when the benefits of transacting in the new arrangements do not outweigh the benefits of transacting in existing arrangements. To verify these hypotheses it will be conducted three case studies that intend to analyze the transactions in the castor beans sub-SAG and the soybeans sub-SAG in different regions of Brazil. It is expected that the results will bring evidence on how dynamic transaction costs influence the agents' choice of alternative arrangements and assist in identifying factors that contribute or inhibit the development of castor bean sub-SAG and soybean sub-SAG. (AU)