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Mechanisms of Governance of Sustainable Development

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  • Bachev, Hrabrin

Abstract

In this paper we incorporate the interdisciplinary New Institutional and Transaction Costs Economics (combining Economics, Organization, Law, Sociology, Behavioral and Political Sciences), and suggest a framework for analyzing the mechanisms of governance of sustainable development. The agricultural sector is used to illustrate the approach, test the framework, and support with examples. Firstly, we discuss the modern concepts and the economics of sustainability. Secondly, we present a new framework for analysis and improvement of the governance of sustainable development. This new approach takes into account the role of specific institutional environment; and the behavioral characteristics of individual agents; and the transaction costs associated with the various forms of governance; and the critical factors of economic activity and exchanges; and the comparative efficiency of market, private, public and hybrid modes; and the potential of production structures for adaptation; and the comparative efficiency of alternative modes for public intervention. Finally, we identify specific modes for environmental governance in Bulgarian agriculture; and access the efficiency of market, private and public modes; and estimate the prospects for evolution of environmental governance in the conditions of EU CAP implementation. Agrarian development is associated with specific (different from other European states) environmental challenges such as degradation and contamination of farmland, pollution of surface and ground waters, loss of biodiversity, significant greenhouse gas emissions etc. That is a result of the specific institutional and governing structure evolving in the sector during the past 20 years. Implementation of the common EU policies will have unlike results in “Bulgarian” conditions enlarging income, technological, social and environmental discrepancy between different farms, sub-sectors and regions. Dominating subsistence farming, production cooperatives, small-scale commercial farms, and large business firms will be highly sustainable in years to come.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14947.

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Date of creation: Apr 2009
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Handle: RePEc:pra:mprapa:14947

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Keywords: mechanisms of governance; sustainable development; institutions; market; private; public and hybrid modes of governance; transaction costs; agrarian sustainability; environmental governance; Bulgaria;

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References

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  1. Bachev, Hrabrin Ianouchev & Nanseki, T., 2008. "Risk Governance in Bulgarian Dairy Farming," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44136, European Association of Agricultural Economists.
  2. Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
  3. Hrabrin Bachev, 2005. "Efficiecy Of Agrarian Organisations," Microeconomics 0511002, EconWPA.
  4. Bachev, Hrabrin, 2008. "Governing of agrarian sustainability," MPRA Paper 7772, University Library of Munich, Germany.
  5. Martinez, Stephen W., 2002. "A Comparison of Vertical Coordination in the U.S. Poultry, Egg, and Pork Industries," Agricultural Information Bulletins 33773, United States Department of Agriculture, Economic Research Service.
  6. Hrabrin Bachev, 2005. "Framework For Assessing Sustainability Of Farms," Microeconomics 0511003, EconWPA.
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Cited by:
  1. Hrabrin Bachev, 2011. "Needs, Modes and Efficiency of Economic Organizations and Public Interventions in Agriculture," Review of Economics & Finance, Better Advances Press, Canada, vol. 1, pages 89-103, June.
  2. Hrabrin Bachev, 2009. "Understanding Efficiency of Agrarian Organisation," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(1), pages 27-42.

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