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[post_content] => Firms are facing increasingly stringent environmental quality specifications for their products, including an increase of biofuel mandates, as a means of reducing emissions of CO2 and air pollutants. These environmentally related ‘new conditions’ affect oil firms’ fuel production, prompting them, in particular, to integrate biofuels into their operations and, at least in certain cases, to change their overall strategies towards biofuels. This paper seeks to make an empirical contribution to the literature on path-dependency by examining how the introduction of biofuels generates a shift in an oil firm’s established technical and production patterns. It analyses in detail the effects of implementing ethanol production in two contrasting oil companies, Petrobras and BP, and draws four main conclusions about the experience.
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Firms are facing increasingly stringent environmental quality specifications for their products, including an increase of biofuel mandates, as a means of reducing emissions of CO2 and air pollutants. These environmentally related ‘new conditions’ affect oil firms’ fuel production, prompting them, in particular, to integrate biofuels into their operations and, at least in certain cases, to […]
By: Nelson Mojarro
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