Governance of the Brazilian production chain of biodiesel

Abstract

This paper aims to analyze the governance structure in the production chain of biodiesel in Brazil on the basis of Transaction Costs Theory and Governance Structure. After establishment of National Program of Production and Use of Biodiesel, it will begin the construction of its production and institutional structure. After nearly four years of the program, which was the governance structure that was formed in the production chain? This question seems especially relevant with regard to the supply of agricultural raw material, given the importance that was observed that governance structure that is being consolidated in this sector incorporate various forms of regulation, some under the supervision of the market and other with the hand of State or associations.