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The ‘Make or Buy’ decision in private environmental transactions

Author

Listed:
  • Douadia Bougherara

    (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique)

  • Gilles Grolleau

    (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - ENESAD - Etablissement National d'Enseignement Supérieur Agronomique de Dijon - INRA - Institut National de la Recherche Agronomique)

  • Naoufel Mzoughi

    (ECODEVELOPPEMENT - Unité de recherche d'Écodéveloppement - INRA - Institut National de la Recherche Agronomique)

  • . International Society For New Institutional Economics

    (ISNIE - International Society for New Institutional Economics)

Abstract

A theoretical framework combining the two branches of TCE, i.e., the governance branch (Williamson, 2005) and the measurement branch (Barzel, 2005) may explain the choice of the governance structure for private environmental transactions. Four case studies, i.e., the market for pure air in polluted cities, the contractual arrangement between La Esperanza and the Monteverde Conservation League, the case of the French mineral water bottler Vittel and the case of landownership by land trusts are briefly developed in order to support the theoretical framework. Special attention is devoted to the presence (or not) of a 3-D (defined, defended and divestible) property rights system and its influence on the way environmental property rights are likely (or not) to be re-arranged. Lessons and policy implications are drawn in order to foster research on these challenging issues.

Suggested Citation

  • Douadia Bougherara & Gilles Grolleau & Naoufel Mzoughi & . International Society For New Institutional Economics, 2006. "The ‘Make or Buy’ decision in private environmental transactions," Post-Print hal-01939948, HAL.
    • Handle: RePEc:hal:journl:hal-01939948
    Note: View the original document on HAL open archive server: https://hal.science/hal-01939948
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    References listed on IDEAS

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    Cited by:

    1. McCann, Laura, 2013. "Transaction costs and environmental policy design," Ecological Economics, Elsevier, vol. 88(C), pages 253-262.
    2. Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000. "Measuring Trust," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 811-846.
      • Glaeser, Edward Ludwig & Laibson, David I. & Scheinkman, Jose A. & Soutter, Christine L., 2000. "Measuring Trust," Scholarly Articles 4481497, Harvard University Department of Economics.
    3. Grolleau, Gilles & McCann, Laura M.J., 2012. "Designing watershed programs to pay farmers for water quality services: Case studies of Munich and New York City," Ecological Economics, Elsevier, vol. 76(C), pages 87-94.

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    More about this item

    Keywords

    PROPERTY RIGHT; ENVIRONMENTAL TRANSACTION; MEASUREMENT; TRANSACTION COST;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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