Governing of Agrarian Sustainability
14 Pages Posted: 3 Nov 2006
Date Written: November 1, 2006
The New Institutional and Transaction Costs Economics is incorporated into agrarian sphere and a framework for governing of agrarian sustainability suggested. It takes into account the role of the specific institutional environment (formal and informal property rights, and systems of their enforcement); the behavioral characteristics of individuals (bounded rationality, tendency for opportunism, entrepreneurships, preferences, risk aversion etc.); the transaction costs associated with protection and exchange of property rights; the critical factors of each transaction (such as frequency, uncertainty, asset specificity, and appropriability); and the comparative efficiency of market, private, public, and hybrid governing modes. The discrete structural analysis is applied, and the principle forms for governing of transactions with specific critical dimensions specified. Cases of market and private sector failures are identified, and needs for a third party (Government, international assistance etc.) intervention justified. Comparative advantages and disadvantages of different modes for public involvement (property rights modernization, regulations, taxes, assistance and support, public provision, hybrid modes) are assessed. The effective governance mix for public intervention in environmental transactions is presented.
Keywords: Agrarian Governance, Governing of Sustainability, New Institutional Economics, Transaction Costs
JEL Classification: Q13, Q12, Q18, D23, E61, H23, L14, L22, L33, L51
Suggested Citation: Suggested Citation