A Study on Impacts of the Institutional Environment and Climate Change on Sustainability of Agriculture – the Case of Bulgaria

Achieving diverse goals of sustainable development greatly depends on the specific socio-economic, institutional and natural environment in a particular country, industry, region, community, etc. Despite its importance, in Bulgaria, like in other East European countries, there are very few empirical studies on the impact(s) of institutional environment and climate change on agrarian sustainability. This paper incorporates the interdisciplinary New Institutional Economics and assesses the impact of major elements of institutional environment and climate change on agrarian sustainability in Bulgaria. First, the methodological framework is outlined. After that, the impacts of various components of institutional environment and climate change on agrarian sustainability were evaluated. Finally, conclusions with implications for further research are presented. The study is based on in-depth interviews with managers of “representative” market-oriented farms of different juridical types, sizes, specializations, and ecological and geographical locations. Institutional components most contributing to the improvement of agrarian sustainability at the current state of development are personal connections, available information for prices, markets, innovations, etc., established reputation, existing trust, and existing possibilities for free contracting. Factors mostly deterring sustainable agrarian development are existing conflicts over agrarian resources, investment possibilities and obstacles, existing monopoly and power positions, and climate change. Studies of this type are to be further expended as precision and representation increased through improving methods, data sources, and cooperation with interested parties.