Identification of Transaction Costs in the Enterprise Budgeting System

One of the nexus in the modern energy sector are bioenergy companies. To generate green electricity, economic operators trade in the market, incurring transaction costs. The main objective of the paper is to identify and describe the transaction costs using a case study of biomass combined heat and power plant (CHP). The company used for the case study was Polmos Żyrardów. A diagnostic survey with a questionnaire was carried out. It was found that information procurement and negotiation costs are the most significant in the transaction cost structure of a biomass CHP plant. The importance of access to information about biomass suppliers in the region and the company›s closest surroundings was highlighted the most. This factor significantly increases the time-consuming activities that make up the process of acquiring information about a potential business partner. The aspect of the formalisation of the contract and the building of mutual trust between the participants in the transaction were emphasised as elements to minimise the uncertainty and opportunism of the partners. It is argued that the level of transaction costs influences decision-making within the organisation, also translating into the efficiency of the entire biomass CHP area. Conscious management of energy resources and care for the environment has made Polmos Żyrardów self-sufficient in energy. In light of the challenges of the energy transition, bioenergy installations make an important contribution to reducing greenhouse gas emissions and building circular bioeconomy.

show abstract

Specificity of Transaction Costs at Bioenergy Producers – A case Study

Ciechanowski

Maciejczak

Ściubak

2022

Annals PAAAE

View full text Add to dashboard Cite

show abstract

Functioning of Agricultural Biogas Plants From the Perspective of Transaction Costs – A Case Study

Ciechanowski,

Maciejczak

2023

Annals PAAAE

View full text Add to dashboard Cite

Agricultural biogas plants transform organic waste into a valuable source of renewable energy, necessary for the energy transition. The institutional environment of agricultural biogas plants shapes the specific operating conditions. It also influences several aspects of the operation, from ensuring the quality of the raw materials used for energy production to selling the energy produced. The main objective of this article is to present the transaction costs incurred by an exemplary agricultural biogas plant and to indicate their impact on the company’s operations. To collect primary data, a structured interview was conducted with the owner of an agricultural biogas plant located in the Lubelskie Province in July 2023. The investigated company generates electricity and heat from agricultural biogas in a cogeneration system. The study concludes that transaction costs influence the choices made within the agricultural biogas plant and translate into its operation. The relevance of the information provided and the level of trust between the different participants in the transaction is indicated. This avoids in most cases an increase in the level of transaction costs as well as negative consequences for the operation of the agricultural biogas plant. The transactions concluded indicate that agricultural biogas plants primarily operate within a region and a local community. The study is a contribution to further research into the area of transaction costs occurring in agricultural biogas plants.

show abstract

scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.

Contact Info

customersupport@researchsolutions.com

10624 S. Eastern Ave., Ste. A-614

Henderson, NV 89052, USA

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Blog Terms and Conditions API Terms Privacy Policy Contact Cookie Preferences Do Not Sell or Share My Personal Information

Made with 💙 for researchers

Part of the Research Solutions Family.

Identification of Transaction Costs in the Enterprise Budgeting System

Cited by 2 publications

References 0 publications

Specificity of Transaction Costs at Bioenergy Producers – A case Study

Specificity of Transaction Costs at Bioenergy Producers – A case Study

Functioning of Agricultural Biogas Plants From the Perspective of Transaction Costs – A Case Study

Contact Info

Product

Resources

About