IDEAS home Printed from https://ideas.repec.org/p/ags/eaae02/24948.html

The Role of Transaction Costs and Bargaining Power in Wildlife and Landscape Services Production: A Micro-Econometric Model for Dutch Dairy Farms

Author

Listed:
  • Polman, Nico B.P.
  • Peerlings, Jack H.M.

Abstract

In this paper a theoretical and empirical model is developed for analysing the decisions of individual farmers whether or not to produce wildlife and landscape services, how much of these services to produce and form an environmental co-operative in order to reduce transaction costs or to build up bargaining power. The model is applied for Dutch dairy farmers as the main users of agricultural land in the Netherlands. Simulations show that the reduction of transaction costs makes it attractive for farmers to form an environmental cooperative in case of a fixed price for wildlife and landscape services. Therefore more wildlife and landscape services are produced and more farmers are involved compared to a situation with individual supply. If demand is no longer perfectly elastic an increase in wildlife and landscape services production leads to lower prices offsetting part of the production and profit increase caused by lower transaction costs. However, if the environmental co-operative acts like a monopolist its bargaining position leads to a decrease in the production of wildlife and landscape services and higher prices.

Suggested Citation

  • Polman, Nico B.P. & Peerlings, Jack H.M., 2002. "The Role of Transaction Costs and Bargaining Power in Wildlife and Landscape Services Production: A Micro-Econometric Model for Dutch Dairy Farms," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24948, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae02:24948
    DOI: 10.22004/ag.econ.24948
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/24948/files/cp02pl55.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.24948?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bob Crabtree & Neil Chalmers & Nicola‐Jo Barron, 1998. "Information for Policy Design: Modelling Participation in a Farm Woodland Incentive Scheme," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 306-320, September.
    2. Shumway, C. Richard, 1995. "Recent Duality Contributions In Production Economics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(01), pages 1-17, July.
    3. Alfons Oude Lansink & Spiro E. Stefanou, 1997. "Asymmetric Adjustment of Dynamic Factors at the Firm Level," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1340-1351.
    4. Kohli, Ulrich, 1993. "A Symmetric Normalized Quadratic GNP Function and the U.S. Demand for Imports and Supply of Exports," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(1), pages 243-255, February.
    5. G. A. A. Wossink, 2003. "Biodiversity conservation by farmers: analysis of actual and contingent participation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(4), pages 461-485, December.
    6. Dorward, Andrew, 1999. "A Risk Programming Approach for Analysing Contractual Choice in the Presence of Transaction Costs," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 26(4), pages 479-492, December.
    7. Robert Macfarlane, 1998. "Implementing Agri-environment Policy: A Landscape Ecology Perspective," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 41(5), pages 575-596.
    8. Slangen, Louis H G, 1997. "How to Organise Nature Production by Farmers," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(3-4), pages 508-529.
    9. Nick Hanley & Hilary Kirkpatrick & David Oglethorpe & Ian Simpson, 1998. "Principles for the provision of public goods from agriculture: modelling moorland conservation in Scotland," Chapters, in: John M. Antle & Joseph N. Lekakis & George P. Zanias (ed.), Agriculture, Trade and the Environment, chapter 8, pages 154-169, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Unay-Gailhard, İlkay & Bojnec, Štefan, 2015. "Farm size and participation in agri-environmental measures: Farm-level evidence from Slovenia," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 46, pages 273-282.
    2. Perekhozhuk, Oleksandr, 2007. "Marktstruktur und Preisbildung auf dem ukrainischen Markt für Rohmilch," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 41, number 92322.
    3. Katherine Falconer & Pierre Dupraz & Martin Whitby, 2001. "An Investigation of Policy Administrative Costs Using Panel Data for the English Environmentally Sensitive Areas," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 83-103, January.
    4. Unay-Gailhard, İlkay & Bojnec, Štefan, 2016. "Sustainable participation behaviour in agri-environmental measures," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 138, pages 47-58.
    5. Canessa, Carolin & Ait-Sidhoum, Amer & Wunder, Sven & Sauer, Johannes, 2024. "What matters most in determining European farmers’ participation in agri-environmental measures? A systematic review of the quantitative literature," Land Use Policy, Elsevier, vol. 140(C).
    6. Feinerman, Eli & Peerlings, Jack H.M., 2002. "Uncertain Land Availability and Perceived Biases in Investment Decisions: The Case of Dutch Dairy Farms," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24949, European Association of Agricultural Economists.
    7. Alfons Oude Lansink, 2001. "Long and Short Term Economies of Scope in Dutch Vegetable Production," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 123-138, January.
    8. Alfons Oude Lansink, 1999. "Area Allocation Under Price Uncertainty on Dutch Arable Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 93-105, January.
    9. Linjia Yao & Gang Zhao & Changqing Yan & Amit Kumar Srivastava & Qi Tian & Ning Jin & Junjie Qu & Ling Yin & Ning Yao & Heidi Webber & Eike Luedeling & Qiang Yu, 2025. "Influence of Information Sources on Technology Adoption in Apple Production in China," Agriculture, MDPI, vol. 15(16), pages 1-25, August.
    10. Fabienne Femenia & Laure Latruffe & Jean-Paul Chavas, 2021. "Responsiveness of farm investment to price changes: evidence from the French crop sector," Applied Economics, Taylor & Francis Journals, vol. 53(34), pages 3972-3983, July.
    11. Mußhoff, O. & Hirschauer, N., . "Planspiele als experimentelle Methode der Politikfolgenabschätzung: Das Beispiel der Stickstoffextensivierung," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 48.
    12. Tack, Jesse B. & LaFrance, Jeffrey T., 2010. "Agricultural Arbitrage, Adjustment Costs, and the Intensive Margin," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56412, Southern Agricultural Economics Association.
    13. Andrew Dorward, 2001. "The Effects of Transaction Costs, Power and Risk on Contractual Arrangements: A Conceptual Framework for Quantitative Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(2), pages 59-73, May.
    14. Diewert, W. E. & Wales, T. J., 1995. "Flexible functional forms and tests of homogeneous separability," Journal of Econometrics, Elsevier, vol. 67(2), pages 259-302, June.
    15. Moro, Daniele & Sckokai, Paolo, 1999. "Modelling the CAP Arable Crop Regime in Italy : Degree of Decoupling and Impact of Agenda 2000," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 53.
    16. Jongeneel, Roelof A. & Polman, Nico B.P. & Slangen, Louis H.G., 2005. "Why Are Farmers Going Multifunctional?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24585, European Association of Agricultural Economists.
    17. CARPENTIER, Alain & GOHIN, Alexandre & SCKOKAI, Paolo & THOMAS, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(01), March.
    18. Petrick, Martin & Kloss, Mathias, "undated". "Identifying Factor Productivity from Micro-data: The case of EU agriculture," Working papers 144004, Factor Markets, Centre for European Policy Studies.
    19. Mäntymaa, Erkki & Pouta, Eija & Hiedanpää, Juha, 2021. "Forest owners' interest in participation and their compensation claims in voluntary landscape value trading: The case of wind power parks in Finland," Forest Policy and Economics, Elsevier, vol. 124(C).
    20. Kanchanaroek, Yingluck & Aslam, Uzma, "undated". "Assessing Farmers’ Preferences To Participate In Agri-environment Policies In Thailand," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260888, European Association of Agricultural Economists.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eaae02:24948. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.