Entrepreneurial and Institutional Analysis of Biodiesel Companies in Mexico

Entrepreneurial and Institutional Analysis of Biodiesel Companies in Mexico

José G. Vargas-Hernández (University of Guadalajara, Mexico), Juan José Esparza López (University of Guadalajara, Mexico) and Justyna Anna Zdunek-Wielgołaska (Warsaw University of Technology, Poland)
DOI: 10.4018/978-1-5225-7958-8.ch005

Abstract

The objective of the chapter is to analyze the role of the institutions in the biodiesel industry, in order to know if there is a relationship with the quality and maturity of the same with the ventures. Starting from a literary review, the framework of the current situation is identified, covering aspects related to formal institutions, laws, rules, regulatory bodies, and the theory that supports the relationship between institutions and entrepreneurship. The chapter concludes that the institutions in Mexico have increased their maturity and incentive to increase the number of producers and distributors of biodiesel, thus taking advantage of the growing market.
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Background Of The Problem

The Mexican government promotes the production in several plants, their distribution and consumption of biofuels and among them biodiesel that promotes the use of clean and renewable energies as alternatives to fossil fuels as a response in a time when climate change has become in priority. Biodiesel is a mixture of monoalkyl esters of fatty acids that is obtained through processes such as the “transesterification” of industrial waste oils and fats. Biodiesel is a mixture of methyl esters of fatty acids that can replace diesel and is obtained from the reaction of vegetable oils or fats with methanol. Glycerin is obtained as a byproduct. Biodiesel is used mainly in Europe and the USA in mixtures with 5% or 20% diesel (B5, B20) or as pure biodiesel (B100). In Brazil and Argentina B5 is used.

In Mexico, in 2003 the Prospective of the use of bioenergy in Mexico was designed, highlighting that the infrastructure that Pemex uses to produce diesel can be used, considering that diesel engines would require minor adjustments to use pure biodiesel. In addition, it is considered that there has been an increase in the cultivation of oil producing plants in tropical and temperate climates and that there are fiscal incentives and subsidies to promote biodiesel. In 2007, a first study was conducted on the possibilities of bioethanol and biodiesel as transportation fuels in Mexico (SENER / BID / GTZ (Edit.), 2007).

Key Terms in this Chapter

Entrepreneurship: It is the ability of people to create new businesses. It is the person who knows how to discover, identify a specific business opportunity and then will arrange or get the necessary resources to start it and then take it to fruition.

Biocombustibles: It is a mixture of organic substances that is used as fuel in internal combustion engines. Derived from biomass, organic matter originated in a biological process, spontaneous, or provoked, usable as a source of energy.

Biodiesel: Biodiesel is a liquid biofuel that is obtained from lipids of natural origin, such is the case of vegetable oils or animal fats that have had or not previous use, subjected to the transesterification process.

Informal Institutions: Are extensions, interpretations and modifications of formal rules, rules of behavior, agreements, codes of conduct or conventions and all those aspects that are related to culture.

México: A country located in North America.

Company: A company is an enterprise or business that has been organized as a business and commercial society including capital and labor and whose main purpose is to obtain an economic benefit.

Formal Institutions: They are the institutions related to constitutions, codes, laws, contracts, and other legal elements.

Institution: Institutions are constraints that arise from human inventiveness to limit political, economic and social interactions. They include informal restrictions, such as sanctions, taboos, customs, traditions, and “codes of conduct,” as well as formal rules (constitutions, laws, property rights).

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