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Transaction Costs, Collective Action and Survival of Heterogeneous Co-management Institutions: Case Study of Forest Management Organisations in West Bengal, India

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  • Biswajit Ray
  • Rabindra Bhattacharya

Abstract

Cost-effective natural resource management is important for equity and efficiency. Yet transaction costs of cooperation may pose a challenge to heterogeneous co-management institutions. We conducted a survey in seven Forest Protection Committees of West Bengal, India to examine this hypothesis empirically. We find that: (1) among several factors, caste heterogeneity, distance to forest, political heterogeneity, land inequality and trust systematically influence transaction costs and collective action; and (2) robust institutions bear less costs of cooperation. The implication is that transaction costs related to heterogeneity may exert significant influence on successes or failures of co-management.

Suggested Citation

  • Biswajit Ray & Rabindra Bhattacharya, 2011. "Transaction Costs, Collective Action and Survival of Heterogeneous Co-management Institutions: Case Study of Forest Management Organisations in West Bengal, India," Journal of Development Studies, Taylor & Francis Journals, vol. 47(2), pages 253-273.
    • Handle: RePEc:taf:jdevst:v:47:y:2011:i:2:p:253-273
    DOI: 10.1080/00220381003706692
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    References listed on IDEAS

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    1. Shanmugaratnam, N. & Vedeld, T. & Mossige, A. & Bovin, M., 1992. "Resource Management and Pastoral Institution Building in West African Sahel," World Bank - Discussion Papers 175, World Bank.
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    1. Ranjan, Ram, 2021. "Land use decisions under REDD+ incentives when warming temperatures affect crop productivity and forest biomass growth rates," Land Use Policy, Elsevier, vol. 108(C).
    2. Kahsay, Goytom Abraha & Medhin, Haileselassie, 2020. "Leader turnover and forest management outcomes: Micro-level evidence from Ethiopia," World Development, Elsevier, vol. 127(C).
    3. Sukumar Sarkar & Biswajit Ray, 2020. "Collective Action and Tragedy of Tank Water," Arthaniti: Journal of Economic Theory and Practice, , vol. 19(2), pages 224-249, December.
    4. Phan, Thu-Ha Dang & Brouwer, Roy & Davidson, Marc David, 2017. "A Global Survey and Review of the Determinants of Transaction Costs of Forestry Carbon Projects," Ecological Economics, Elsevier, vol. 133(C), pages 1-10.
    5. Promita Mukherjee & Biswajit Ray & Rabindra N. Bhattacharya, 2017. "Status differences in collective action and forest benefits: evidence from joint forest management in India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(5), pages 1831-1854, October.
    6. Biswajit Ray & Promita Mukherjee, 2023. "Forest Income and Rural Livelihoods in West Bengal, India," Studies in Microeconomics, , vol. 11(1), pages 10-35, April.
    7. Mundaca, Luis & Mansoz, Mathilde & Neij, Lena & Timilsina, Govinda R, 2013. "Transaction costs of low-carbon technologies and policies : the diverging literature," Policy Research Working Paper Series 6565, The World Bank.
    8. Syed Tariq Anwar, 2023. "The sharing economy and collaborative consumption: Strategic issues and global entrepreneurial opportunities," Journal of International Entrepreneurship, Springer, vol. 21(1), pages 60-88, March.
    9. Huong, Tran Thi Thu & Zeller, Manfred & Hoanh, Chu Thai, 2014. "The ‘Five Million Hectare Reforestation Program’ in Vietnam: An Analysis of its Implementation and Transaction Costs - A Case Study in Hoa Binh Province," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(4), pages 1-35, November.

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