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Private transaction costs and environmental cross compliance in a crop region of Southwestern France

Author

Listed:
  • Aude Ridier
  • Charilaos Kephaliacos
  • Francoise Carpy-Goulard

Abstract

The 2003 review of the common agricultural policy (CAP) has introduced several new policy tools, among which is cross compliance. The introduction of this new policy entails production costs, along with other types of costs arising at the farm level: administrative, information and organisational costs, called transaction costs. The purpose of this paper is to determine the nature of transaction costs and to assess them. A survey conducted in 2006 among a sample of 39 farmers followed by a descriptive statistical analysis (multiple correspondence analysis, MCA) permits to associate farmer profiles with different levels of incurred transaction costs. These profiles reveal the impact which the farmers' responsibilities (professional networks) and the role of voluntary commitments previously undertaken may have on the nature and importance of transaction costs. This paper opens up new perspectives on the adoption criteria that should be taken into account in the evolution of agri-environmental regulations.

Suggested Citation

  • Aude Ridier & Charilaos Kephaliacos & Francoise Carpy-Goulard, 2011. "Private transaction costs and environmental cross compliance in a crop region of Southwestern France," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 9(1/2), pages 68-79.
  • Handle: RePEc:ids:ijarge:v:9:y:2011:i:1/2:p:68-79
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    References listed on IDEAS

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    1. Per Kristian Rørstad & Arild Vatn & Valborg Kvakkestad, 2007. "Why do transaction costs of agricultural policies vary?," Agricultural Economics, International Association of Agricultural Economists, vol. 36(1), pages 1-11, January.
    2. Mosnier, Claire & Ridier, Aude & Kphaliacos, Charilaos & Carpy-Goulard, Françoise, 2009. "Economic and environmental impact of the CAP mid-term review on arable crop farming in South-western France," Ecological Economics, Elsevier, vol. 68(5), pages 1408-1416, March.
    3. Isabel Vanslembrouck & Guido Van Huylenbroeck & Wim Verbeke, 2002. "Determinants of the Willingness of Belgian Farmers to Participate in Agri‐environmental Measures," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 489-511, November.
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    Cited by:

    1. Ridier, Aude & Ben El Ghali, Mohamed & Nguyen, G. & Kephaliacos, Charilaos, 2013. "The role of risk aversion and labor constraints in the adoption of low input practices supported by the CAP green payments in cash crop farms," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 94(2).

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