Measuring transaction costs of grassland eco-compensation policies: the case of the Compensation and Rewards Policy for Grassland Protection in Inner Mongolia Autonomous Region
Bao Zhang, Scott Waldron, Colin Brown, Jing Zhang, Guanghua Qiao
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引用次数: 0
Abstract
China is investing heavily in agri-environmental and eco-compensation schemes to address growing environmental problems in rural areas. However, assessments of the schemes often overlook transaction costs. Transaction costs are of particular importance in pastoral areas characterised by remoteness, dispersed populations, diverse agro-ecological conditions and heterogeneous livestock systems. Drawing on principles from institutional economics, this analysis investigated transaction costs associated with China’s current grassland eco-compensation schemes in Inner Mongolia and how they might change under alternative policy scenarios. The analysis examined the magnitude of overall transaction costs, their disaggregation among cost types and the incidence of the transaction costs at different administrative levels. The analysis found that the relative magnitude of transaction costs is substantial for the existing policy, whereas an alternative policy more effective in achieving stocking-rate reductions and improved grassland conditions increases transaction costs more than two-fold. The analysis demonstrated the value in accounting for transaction costs in the design and assessment of eco-compensation schemes.
期刊介绍:
The Rangeland Journal publishes original work that makes a significant contribution to understanding the biophysical, social, cultural, economic, and policy influences affecting rangeland use and management throughout the world. Rangelands are defined broadly and include all those environments where natural ecological processes predominate, and where values and benefits are based primarily on natural resources.
Articles may present the results of original research, contributions to theory or new conclusions reached from the review of a topic. Their structure need not conform to that of standard scientific articles but writing style must be clear and concise. All material presented must be well documented, critically analysed and objectively presented. All papers are peer-reviewed.
The Rangeland Journal is published on behalf of the Australian Rangeland Society.