Welcome to the InfoSci Platform
Modeling Transaction Costs for a Sustainable Energy Policy: A Review and Illustration

Modeling Transaction Costs for a Sustainable Energy Policy: A Review and Illustration

Ranjan Kumar Ghosh
Copyright: © 2016 |Pages: 15
ISBN13: 9781522500940|ISBN10: 1522500944|EISBN13: 9781522500957
DOI: 10.4018/978-1-5225-0094-0.ch007
Cite Chapter Cite Chapter

MLA

Ghosh, Ranjan Kumar. "Modeling Transaction Costs for a Sustainable Energy Policy: A Review and Illustration." Economic Modeling, Analysis, and Policy for Sustainability, edited by Anandajit Goswami and Arabinda Mishra, IGI Global, 2016, pp. 130-144. https://doi.org/10.4018/978-1-5225-0094-0.ch007

APA

Ghosh, R. K. (2016). Modeling Transaction Costs for a Sustainable Energy Policy: A Review and Illustration. In A. Goswami & A. Mishra (Eds.), Economic Modeling, Analysis, and Policy for Sustainability (pp. 130-144). IGI Global. https://doi.org/10.4018/978-1-5225-0094-0.ch007

Chicago

Ghosh, Ranjan Kumar. "Modeling Transaction Costs for a Sustainable Energy Policy: A Review and Illustration." In Economic Modeling, Analysis, and Policy for Sustainability, edited by Anandajit Goswami and Arabinda Mishra, 130-144. Hershey, PA: IGI Global, 2016. https://doi.org/10.4018/978-1-5225-0094-0.ch007

Export Reference

Mendeley
Favorite

Abstract

This chapter presents a discussion on the economic governance aspect of sustainability in the context of energy policy and access. It is believed that incentives are sufficient for emergence of competitive energy markets which augment energy access. However, recent developments in Transaction Cost Economics (TCE) have shown that this need not be true when costs arising out of incomplete contracting are high. Yet, the role of transaction costs and the need to identify and model their behavior has not received adequate attention. This chapter reviews the basic tenets of TCE around natural monopoly sectors. It then illustrates in greater micro-analytic detail how transaction costs can be identified and empirically modeled in the context of industrial self-generation of electricity. The conclusion is that in the analysis of production systems, sustainability arguments are not complete unless costs arising out of inefficient contracting are accounted and an adequate economic governance apparatus is set-up.

Request Access

You do not own this content. Please login to recommend this title to your institution's librarian or purchase it from the IGI Global bookstore.