Advanced Search
MyIDEAS: Login to save this paper or follow this series

Transaction Cost Analysis of Upstream-Downstream Relations in Watershed Services: Lessons from Community-Based Forestry Management in Sumatra, Indonesia

Contents:

Author Info

  • Arifin, Bustanul

Abstract

This study analyzes transaction costs occurred in the existing set-up of upstream-downstream relations and reward mechanisms of the watershed services in Sumatra, Indonesia. The rewards are manifested through property right reforms in terms of "recognition" and "loss of fear of eviction" among local communities to utilize land within the "protection forest", such as implemented under the community-based forestry management (CBFM) policy. The study sites of Sumber Jaya watershed in Sumatra, Indonesia has been notoriously known as a benchmark for conflict of watershed functions between the state and the society, and among stakeholders such as coffee growers, domestic water-users, hydroelectric power company, etc. Estimated transaction cost to implement the rewards is US$ 55 per household, a relatively high cost for rural standards. The component consists of costs of searching information (70%), organizing the group (27%), and enforcement of working rules and regulations (3%), implying a non-efficient economic organization of the society and non-clear policy structures at regional and national level. Roles of intermediaries such as NGO (national and international) are extremely important to implement the negotiation support system and develop multi- stakeholders strategy to reduce transaction costs, especially to ensure conflict resolutions, improve trusts and shared responsibility to achieve more sustainable resource management.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://purl.umn.edu/25788
Download Restriction: no

Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25788.

as in new window
Length:
Date of creation: 2006
Date of revision:
Handle: RePEc:ags:iaae06:25788

Contact details of provider:
Email:
Web page: http://www.iaae-agecon.org/
More information through EDIRC

Related research

Keywords: Environmental services; transaction costs; Indonesia; Resource /Energy Economics and Policy; Q15;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Coase, Ronald, 1998. "The New Institutional Economics," American Economic Review, American Economic Association, vol. 88(2), pages 72-74, May.
  2. Elinor Ostrom, 2000. "Collective Action and the Evolution of Social Norms," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 137-158, Summer.
  3. Mburu, John & Birner, Regina & Zeller, Manfred, 2003. "Relative importance and determinants of landowners' transaction costs in collaborative wildlife management in Kenya: an empirical analysis," Ecological Economics, Elsevier, vol. 45(1), pages 59-73, April.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Arifin, B. & Swallow, B. & Suyanto & Coe, R., 2008. "A conjoint analysis of farmer preferences for community forestry contracts in the Sumber Jaya watershed, Indonesia," Working Papers b15527, World Agroforestry Centre, Library Department.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ags:iaae06:25788. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.