The transaction costs driving captive power generation: Evidence from India

Energy, uncertainty, and entrepreneurship: John D Rockefeller’s sequential approach to transaction costs management in the early oil industry

“…2 For this article, these 4A+A factors also point to an expectation: entrepreneurial strategies that absorb or internalise uncertainty related to energy availability (E1) / accessibility (E2) / acceptability (E3) / adaptability (E4) / affordability (E5) will contribute to success amidst uncertainty. While straightforward, this expectation is daring in the context of modern energy because many in the field try to avoid uncertainty through collective [neoclassical] efforts aimed at gathering better information and improving governance [e.g., 5 [29][30][31][32][33]. By confirming or rejecting this expectation, this paper helps to establish if Standard's strategies support modern practices in the field of energy.…”

Gas based power generation in India: Lessons from a transaction cost analysis

“…Large scale coal-fired power plants face high transaction costs due to uncertainty in coal provision in India and the TCE framework can be used to find out if bidding for captive coal blocks is an efficient solution to such fuel supply risks. Additionally, the role of transaction costs in captive power production is also crucial [25] and greater examination from a TCE perspective is required to devise strategies that can tap the potential effectively. …”

Combining Private and Public Resources: Captive Power Plants and Electricity Sector Development in Bangladesh

“…The decision to invest in self-generation depends on the degree of vulnerability, as some firms are more vulnerable to outages than others. For example, Ghosh and Kathuria (2014) treat electricity access as a transaction and show that there is a corresponding transaction cost when firms face a power outage. They find that a firm facing high transaction costs has more incentives to invest in self-generation of electricity.…”

“…Larger firms enjoying economies of scale tend to have large investments and can minimise the negative consequences of relying on self-generation. In many countries, the availability of low cost fuel can outweigh the cost of establishing the self-generation infrastructure and make it a feasible alternative to tackle the power outages (Ghosh and Kathuria, 2014).…”