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Estimates Of Public Sector Transaction Costs In Nrcs Programs

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  • McCann, Laura M.J.
  • Easter, K. William

Abstract

When evaluating the economic efficiency of policies to reduce nonpoint source pollution, administrative or transaction costs are usually not taken into account. While the importance of transaction costs has been recognized in the theoretical literature, the fact that they are not incorporated in empirical analyses means that, in effect, these costs are given a zero value. This issue is examined quantitatively using data collected by the National Resource Conservation Service (NRCS). Transaction costs are found to be a significant portion (38 percent) of overall conservation costs. This provides strong support for including these costs in economic evaluations of alternative policy instruments.

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Bibliographic Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 32 (2000)
Issue (Month): 03 (December)
Pages:

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Handle: RePEc:ags:joaaec:15313

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Web page: http://www.saea.org/jaae/jaae.htm
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Related research

Keywords: NRCS; transaction costs; conservation practices; abatement costs; environmental policy; Environmental Economics and Policy;

References

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  1. Laura McCann & K. William Easter, 1999. "Transaction Costs of Policies to Reduce Agricultural Phosphorous Pollution in the Minnesota River," Land Economics, University of Wisconsin Press, vol. 75(3), pages 402-414.
  2. Stavins Robert N., 1995. "Transaction Costs and Tradeable Permits," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 133-148, September.
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Citations

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Cited by:
  1. Pannell, David J. & Roberts, Anna M. & Park, Geoff & Alexander, Jennifer, 2013. "Improving environmental decisions: A transaction-costs story," Ecological Economics, Elsevier, vol. 88(C), pages 244-252.
  2. Yang, Wanhong & Bryan, Brett A. & MacDonald, Darla Hatton & Ward, John R. & Wells, Geoff & Crossman, Neville D. & Connor, Jeffrey D., 2010. "A conservation industry for sustaining natural capital and ecosystem services in agricultural landscapes," Ecological Economics, Elsevier, vol. 69(4), pages 680-689, February.
  3. Pannell, David J. & Roberts, Anna M. & Park, Geoff & Alexander, Jennifer, 2012. "Improving environmental decisions: a transaction-costs story," Working Papers 125851, University of Western Australia, School of Agricultural and Resource Economics.
  4. Metcalfe, Todd & Bosch, Darrell J. & Pease, James W. & Alley, Mark M. & Phillips, Steve B., 2007. "Yield Reserve Program Costs in the Virginia Coastal Plain," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), October.
  5. Cattaneo, Andrea & Hellerstein, Daniel & Nickerson, Cynthia J. & Myers, Christina, 2006. "Balancing the Multiple Objectives of Conservation Programs," Economic Research Report 7257, United States Department of Agriculture, Economic Research Service.
  6. Coggan, Anthea & Whitten, Stuart M. & Bennett, Jeff, 2010. "Influences of transaction costs in environmental policy," Ecological Economics, Elsevier, vol. 69(9), pages 1777-1784, July.
  7. McCann, Laura & Colby, Bonnie & Easter, K. William & Kasterine, Alexander & Kuperan, K.V., 2005. "Transaction cost measurement for evaluating environmental policies," Ecological Economics, Elsevier, vol. 52(4), pages 527-542, March.
  8. McCann, Laura M.J. & Hafdahl, Adam, 2003. "Agency Perceptions Of Alternative Salinity Policies: The Role Of Fairness," 2003 Annual meeting, July 27-30, Montreal, Canada 22097, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Paolo Canonico & Ernesto Nito & Gianluigi Mangia & Lorenzo Mercurio & Mario Pezzillo Iacono, 2013. "Regulation issues in the Italian local transport system: aligning transactions and governance structures," Journal of Management and Governance, Springer, vol. 17(4), pages 939-961, November.
  10. Abler, David G., 2004. "Multifunctionality, Agricultural Policy, and Environmental Policy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(1), April.
  11. Coggan, Anthea & Buitelaar, Edwin & Whitten, Stuart & Bennett, Jeff, 2013. "Factors that influence transaction costs in development offsets: Who bears what and why?," Ecological Economics, Elsevier, vol. 88(C), pages 222-231.
  12. McCann, Laura M.J., 2001. "Transaction Costs of Agri-Environmental Policies in Vietnam," 2001 Conference (45th), January 23-25, 2001, Adelaide 125787, Australian Agricultural and Resource Economics Society.

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