Biodigester Development in Saskatchewan: an Institutional Analysis
Date
2002
Authors
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Journal ISSN
Volume Title
Publisher
ORCID
Type
Degree Level
Masters
Abstract
Biodigesters are a technology that has been applied in equatorial and temperate
regions of the world for manure management and energy production. A positive
externality is created from the use of biodigesters when volatile gasses that would
otherwise enter the atmosphere as greenhouse gasses are captured. The capture of
greenhouse gasses suggests that biodigesters are a potential technology for earning
greenhouse gas credits given the existence of a carbon credit trading market involving
the exchange of emission permits analogous to that of any other commodity.
Complexity and expense of adapting biodigesters for the Saskatchewan climate
makes financing or use of such developments problematic. This thesis uses new
institutional economics to determine the least transaction cost governance form to
encourage investment in biodigesters. What distinguishes this thesis from previous
transaction cost economics analysis is that biodigesters involve more than one
transaction occurring simultaneously. Despite a thorough review of the economics
literature, no other examples involving multiple transactions was found.
The research conducted in this thesis suggests that no one form of governance is
superior in mitigating all possible incentives for opportunism in this case. Parties to an
agreement must evaluate which potential costs are worth bearing to encourage
investments in biodigesters in Saskatchewan.
This research does however indicate that the organizational form offers the
fewest incentives for opportunistic behavior is one in which the Hog Bam and a
biodigester are owned as a joint venture between a hog bam management firm and the
electricity generator.
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Degree
Master of Science (M.Sc.)
Department
Economics
Program
Agricultural Economics