Biofuels supply chains: sustainability and entrepreneurship in local agricultural systems

Investments in bio-energies require deep and accurate analysis to evaluate their economical feasibility both by the investors’ perspective and by the policy makers’ perspectives. Public opinion and policy makers generally agree about the value of agro-energy as tools able to ameliorate the economic conditions of the agricultural entrepreneurs and multifunctional agriculture. If it is reasonable to believe that investments in green energy have the lowest environmental impact among the actual feasible alternative. The chance to attain locally organized supply chains are presumably higher where there is a higher concentration of human, natural and financial capitals. For an harmonic and successful organization of both the exploitation of such capitals and the management of the positive and negative externalities, social capital based on trust and reciprocated relationships is a relevant issue. After a literature review about social capital and energy supply chain (prg.1), we investigate the instruments for public direct financial incentive (prg.2) and the development of the public intervention plans in the agro-energy sector within specific LAS, namely throughout the Local Development Plans (LDP) by Local Action Groups (LAG). In the third paragraph we present the case study of the Apulia Region (prg.3) based upon a unique dataset specifically built that collects LDP data relative to social capital. We finally propose a new methodological approach that makes use of social network analysis investigating the net of relationships underneath the territorial organization of the LAGs and the local supply chains, assuming it has a determinant role in enhancing or, conversely, hindering the rising of social capital. Results seem to show that site specificities affect the sustainability of biofuels supply chains, and that effects seems to be reciprocally bounded, thus calling for the inclusion of such measures when planning new policies, and for analytical approaches encompassing historical perspectives. Finally, we draw the conclusions.