The Institutional Economics Analysis Of Sustainable Development Of Second Generation Biofuels

Issues such as energy security,energy crisis,and environmental pollution have made the world more and more concerned about renewable energy development.Biofuels have attracted attention as the only source of renewable energy that can be directly blended with fossil fuels.The second generation of biofuels uses agroforestry waste and non-food crop raw materials.The academic community generally believes that waste recycling can be realized on the one hand,and on the other hand,marginal land can be used to achieve low carbonization,which is conducive to the sustainable development of the environment.However,in recent years,the development of second-generation biofuels in China has shown unsustainability.For example,the government's decentralized management allows enterprises to over-exploit;only the subsidy policy has no penalty mechanism,which causes blind use of cultivated land by enterprises to reduce food production,and single planting of regional works creates soil erosion.Therefore,the lack of institutions is the fundamental problem of the unsustainable development of second-generation biofuels in China.Based on the transaction cost theory,property rights theory,and contract theory of the new institutional economics,this paper analyzes the framework of Williamson's institutional analysis from the perspective of macro-policy,government organization,and micro-operation.In the context of the current macro-policy environment,the horizontal and vertical power-account relationship is analyzed at the level of government organizations,and a complete information static game method is used to thoroughly analyze the game results of the Ministry of Ecology and Environment and the energy sector and the agricultural and forestry sectors,and from the transaction costs.Analyze the measures to achieve an ideal equilibrium;Analyze the impact of decision-making behaviors on the sustainability of traditional energy companies,second-generation biofuel companies,and “farmer+enterprise+base” models at the micro-level of operations,and optimize resource allocation.The angle of analysis is to improve the game results.Finally,according to the above analysis results,suggestions are made to improve the system of second-generation biofuel development.