MANAGING A VENTURE IN BIO-ENERGY SUPPLY CHAIN: AN OPERATIONAL APPROACH

This paper discusses the main challenges highlighted in the most prominent literature regarding the development, coordination and management of bio-energy supply chains. One of the most debated topics relates to a potential trade-off between bio-energy production and food security. Nevertheless, farmers decisions on whether or not to participate in a bio-energy supply chain needs to be investigated under the light of a collective arrangement with other stakeholders that, in most cases, show conflicting interests. This study aims at underlying the main challenges for managing a venture in bio-energy supply chains suggesting an operational approach dedicated at the relationships necessary to implement a collective strategy positively impacting on the likelihood to participate. A stated preference class of models is presented in detail. They are useful to choose among alternative contracts with varying attribute levels to start biomass cultivation or to participate to a by-product supply chain. Results of this class of models can be used to capture the determinants of contract attributes as well as to express trade-offs among attributes in convenient monetary terms.