Governing of Agro-Ecosystem Services

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Governing of Agro-Ecosystem Services

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Bachev, Hrabrin

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Hrabrin Ianouchev Bachev

Abstract

In this paper we incorporate interdisciplinary New Institutional and Transaction Costs Economics (combining Economics, Organization, Law, Sociology, Behavioral and Political Sciences), and suggest a framework for analysis of mechanisms of governance of agro-ecosystem services. Firstly, we present a new approach for analysis and improvement of governance of agro-ecosystem services. It takes into account the role of specific institutional environment (formal and informal rules, distribution of rights, systems of enforcement); and behavioral characteristics of individual agents (preferences, bounded rationality, opportunism, risk aversion, trust); and transactions costs associated with ecosystem services and their critical factors (uncertainty, frequency, asset specificity, appropriability); and comparative efficiency of market, private, public and hybrid modes of governance. Secondly, we identify spectrum of market and private forms of governance of agro-ecosystem services (voluntary initiatives; market trade with eco-products and services; special contractual arrangements; collective actions; vertical integration), and evaluate their efficiency and potential. Next, we identify needs for public involvement in the governance of agro-ecosystem services, and assess comparative efficiency of alternative modes of public interventions (assistance, regulations, funding, taxing, provision, partnership, property right modernization). Finally, we analyze structure and efficiency of governance of agro-ecosystems services in Zapadna Stara Planina – a mountainous region in North-West Bulgaria. Post-communist transition and EU integration has brought about significant changes in the state and governance of agro-ecosystems services. Newly evolved market, private and public governance has led to significant improvement of part of agro-ecosystems services introducing modern eco-standards and public support, enhancing environmental stewardship, desintensifying production, recovering landscape and traditional productions, diversifying quality, products, and services. At the same time, novel governance is associated with some new challenges such as unsustainable exploitation, lost biodiversity, land degradation, water and air contamination. What is more, implementation of EU common policies would have no desired impact on agro-ecosystem services unless special measures are taken to improve management of public programs, and extend public support to dominating small-scale and subsistence farms.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15492.

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Date of creation: 31 May 2009
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Handle: RePEc:pra:mprapa:15492

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Find related papers by JEL classification:
D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
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K32 - Law and Economics - - Other Substantive Areas of Law - - - Environmental, Health, and Safety Law
Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
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D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
K00 - Law and Economics - - General - - - General (including Data Sources and Description)
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting
Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Renewable Resources and Conservation: Issues in International Trade
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

This paper has been announced in the following NEP Reports:

NEP-AGR-2009-06-17 (Agricultural Economics)
NEP-ALL-2009-06-17 (All new papers)
NEP-ENV-2009-06-17 (Environmental Economics)

References listed on IDEAS
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Farber, Stephen C. & Costanza, Robert & Wilson, Matthew A., 2002. "Economic and ecological concepts for valuing ecosystem services," Ecological Economics, Elsevier, vol. 41(3), pages 375-392, June. [Downloadable!] (restricted)

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