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Institutions for Managing Resilient Salmon (Oncorhynchus Spp.) Ecosystems: the Role of Incentives and Transaction Costs Ecology and Society
Hanna, Susan S; Oregon State University; susan.hanna@oregonstate.edu.
Institutions are the mechanisms that integrate the human and ecological spheres. This paper discusses the institutional challenge of integrating salmon (Oncorhynchus spp.) ecosystems and human systems in ways that effectively promote resilience. Salmon recovery in the Columbia River Basin demonstrates the challenge. Despite the comprehensive scope of Basin salmon management, it has a number of problems that illustrate the difficulties of designing institutions for ecosystem and human system resilience. The critical elements of salmon ecosystem management are incentives and transaction costs, and these comprise a large piece of missing institutional infrastructure. Once the focus is placed on incentives and costs, a number of different management strategies...
Tipo: Peer-Reviewed Synthesis Palavras-chave: Columbia River Basin; Ecosystems; Human systems; Incentives; Institutions; Resilience; Salmon; Transaction costs.
Ano: 2008
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A Revised Conceptual Framework for Payments for Environmental Services Ecology and Society
Sommerville, Matthew M.; Department of Life Sciences, Imperial College London; m.sommerville06@imperial.ac.uk; Jones, Julia P. G.; School of Environment and Natural Resources, University of Bangor; julia.jones@bangor.ac.uk; Milner-Gulland, E. J.; Department of Life Sciences, Imperial College London; e.j.milner-gulland@imperial.ac.uk.
Over the past decade, “Payments for Environmental Services” (PES) have received a great deal of attention as a natural-resource management approach. We propose a revised definition and framework for PES implementation that focuses on the use of positive incentives as the philosophy behind PES and conditionality as the method for influencing behaviors. We note the importance of additionality of PES interventions to justify their value in a wider context. Finally, we highlight the need to understand the local institutional context in terms of the characteristics of buyers, sellers, and their relationship for implementation to be effective. Our framework acts as a platform to begin examining how the variety of options for structuring PES...
Tipo: Peer-Reviewed Insight Palavras-chave: Additionality; Conditional; Ecosystem services; Environmental management; Incentives; Institutions; Monitoring; Transactions.
Ano: 2009
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Matching Social and Ecological Systems in Complex Ocean Fisheries Ecology and Society
Wilson, James A.; University of Maine; Jwilson@maine.edu.
This paper considers ocean fisheries as complex adaptive systems and addresses the question of how human institutions might be best matched to their structure and function. Ocean ecosystems operate at multiple scales, but the management of fisheries tends to be aimed at a single species considered at a single broad scale. The paper argues that this mismatch of ecological and management scale makes it difficult to address the fine-scale aspects of ocean ecosystems, and leads to fishing rights and strategies that tend to erode the underlying structure of populations and the system itself. A successful transition to ecosystem-based management will require institutions better able to economize on the acquisition of feedback about the impact of human...
Tipo: Peer-Reviewed Synthesis Palavras-chave: Resource governance; Fisheries; Complex adaptive systems; Scale; Fishing effort; Decentralization; Governance institutions; Incentives; Multiscale governance; Fishing rights; Ecosystem management; Ecosystem-based management; Polycentric networks.
Ano: 2006
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Modeling Interdependent Participation Incentives: Dynamics of a Voluntary Livestock Disease Control Program AgEcon
Wang, Tong; Hennessy, David A..
This paper models producers’ interdependent incentives to participate in a voluntary livestock disease control program. Under strategic complementarity among participation decisions, after a slow start momentum can build such that market premium for participation and participation rate increase sequentially. Non-participation, partial participation and full participation can all be Nash equilibria while participation cost heterogeneity will dispose the outcome toward incomplete participation. We find plausible conditions under which temporary government subsidies to the least cost-effective producers causes tipping toward full participation. Applying parameters from the literature on Johnes’ disease, we illustrate factors that may affect participation....
Tipo: Working Paper Palavras-chave: Incentives; Livestock disease; Momentum theorem; Strategic complementarity; Tipping; Voluntary program.; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries.
Ano: 2012 URL: http://purl.umn.edu/122358
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Patents and Other Intellectual Property Rights AgEcon
Moschini, GianCarlo.
This article reviews intellectual property rights (IPRs), with some emphasis on the protection of agricultural and life sciences innovations. The main institutional features of IPRs are first discussed, along with a brief historical background and an articulation of the main rationale for the existence of such rights. This is followed by an overview of the principal economic issues related to IPRs. The main benefit/cost trade-offs of allowing patents and other IPRs are explained, and specific issues are then analyzed in some depth, including the scope of patent protection, the effects of patent races, and the problems arising when IPRs concern cumulative and/or complementary innovations. The economics of IPRs are further illustrated by considering...
Tipo: Working or Discussion Paper Palavras-chave: Efficiency; Incentives; Innovation; Invention; Market failure; Monopoly; Property rights; Public good; Second best; Research and Development/Tech Change/Emerging Technologies.
Ano: 2001 URL: http://purl.umn.edu/18466
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CONSERVATION OF ENDANGERED SPECIES: CAN INCENTIVES WORK FOR PRIVATE LANDOWNERS? AgEcon
Langpap, Christian.
It has been argued that the traditional regulatory approach of the Endangered Species Act, based on land-use restrictions, has failed to protect endangered species on private land. In response, there has been a call for the use of incentives to complement this regulatory approach. This paper examines the potential of incentives programs to elicit conservation-oriented management choices from landowners. Data obtained from a survey of non-industrial private forest owners in Oregon and Washington is used to examine the effectiveness of various incentives. The results indicate that incentives, in particular compensation and assurances, can be effective in increasing the conservation effort provided by landowners. The results also suggest that conservation...
Tipo: Conference Paper or Presentation Palavras-chave: Endangered species; Incentives; Regulation; Endangered Species Act; Conservation; Environmental Economics and Policy; Resource /Energy Economics and Policy; Q220; Q230; Q280; K320.
Ano: 2003 URL: http://purl.umn.edu/21972
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Where the rubber hits the road: Biodiversity conservation incentives in theory and practice AgEcon
Coggan, Anthea; Whitten, Stuart M.; Bennett, Jeffrey W..
The lack of appropriate incentives through conventional markets is a major cause of deterioration of biodiversity on private land. In response, governments often intervene through changing the incentives faced by landholders. There are, however, potentially many ways that the incentives to private landholders could encourage improved conservation of native vegetation on private lands. These policies and incentives leverage change in different ways and are suited to differing opportunities and objectives and incur different costs. Our goal in this paper is to provide some guidance to support incentive selection and design decisions. We initially develop a framework for incentive decision, design and implementation. The framework is supported and illustrated...
Tipo: Conference Paper or Presentation Palavras-chave: Biodiversity; Incentives; Private land; Resource /Energy Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/10397
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The Efficacy of TRIPS: Incentives, Capacity and Threats AgEcon
Kerr, William A..
There is a major split between developed and developing countries over the protection of the patents in pharmaceuticals in the TRIPS. This dispute is symptomatic of the difficulties of incorporating a non-trade issue into a trade organization. Incentives and threats are examined in the context of the TRIPS. It is concluded that developing countries have no direct incentives to protect intellectual property, that the threat of trade actions is unlikely to induce compliance and that the use of indirect incentives is discredited and will fail to achieve its objective over the long run. Successful protection of intellectual property in developing countries will require a way to provide them with a direct incentive to enforce such protection.
Tipo: Journal Article Palavras-chave: Enforcement; Incentives; Intellectual property; Knowledge economy; Threats; TRIPS; International Relations/Trade.
Ano: 2003 URL: http://purl.umn.edu/23815
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Enjoying a Good Port with a Clear Conscience: Geographic Indicators, Rent Seeking and Development AgEcon
Kerr, William A..
The European Union is attempting to have the protection of geographic indicators strengthened in the WTO. There may be sufficient rents and other benefits available to justify this strategy in the negotiations. To achieve its rent-seeking goals, however, the European Union needs allies at the negotiations. It has been courting developing countries by touting the benefits of geographic indicators for their products. For most products originating in developing countries, the opportunities for rents will first have to be created, a resource-intensive and problematic activity. Further, even if rents can be created in the short run, the forces of competition are likely to erode them. Scarce resources might be better utilized on other development strategies that...
Tipo: Journal Article Palavras-chave: Developing countries; Geographic indicators; Incentives; Rent seeking; Sustainable development; WTO; International Relations/Trade.
Ano: 2006 URL: http://purl.umn.edu/23827
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VOLUNTARY ACTION OF A FIRM ON ENVIROMENT MANAGEMENT: AN EMPIRICAL ASSESSMENT ON SRI LANKAN FOOD PROCESSING FIRMS’ RESPONSE TO THE PRIVATE AND REGULATORY INCENTIVES AgEcon
Jayasinghe-Mudalige, Udith K.; Udugama, J.M.M.; Ikram, S.M.M..
The effect of a set of private/market (i.e. financial implications, internal efficiency, market response) and public/non-market (i.e. government regulation, judiciary/legal system) incentives for a firm to act voluntarily on environmental quality is examined. It uses the levels of adoption of five solid waste management practices [SWMPs], namely: (1) 3R system; (2) Composting; (3) Good manufacturing practices; (4) Biogas unit, and (5) ISO 14000 by food processing sector in Sri Lanka in response to the prevalence of each incentive at the firm as the case. The data collected from 325 firms through in-depth interviews and site inspections and supported by a validated structured questionnaire were analyzed using the principles of Structural Equation Modeling....
Tipo: Conference Paper or Presentation Palavras-chave: Environment management; Food processing sector in Sri Lanka; Incentives; Regulation; Solid waste management; Voluntary adoption; Farm Management.
Ano: 2011 URL: http://purl.umn.edu/100567
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Putting theory into practice: market failure and market based instrument design AgEcon
Whitten, Stuart M.; Coggan, Anthea; Reeson, Andrew; Gorddard, Russell J..
The use of market-based instruments (MBIs) to provide and protect ecosystem services has gained significant attention in Australia. Despite their popularity, MBIs are not appropriate for the provision of all ecosystem services. Rather, MBIs must be carefully designed given the ecosystem service outcomes desired, while meeting the needs of participants. In this paper we detail the importance of a robust theoretical structure to underpin the selection and design of an MBI. In particular, we demonstrate the role of identifying and analysing the nature of the market failures present, and their implications for instrument design. Our conclusions are illustrated using several regional MBI case studies.
Tipo: Conference Paper or Presentation Palavras-chave: Market failure; Market based instrument; Incentives; Marketing.
Ano: 2007 URL: http://purl.umn.edu/10441
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Using Incentives to Buy Land-Use Change in Agriculture for Environmental Benefits AgEcon
Pannell, David J..
In general, the use of incentive payments to landholders in environmental programs is poorly thought through. This article discusses situations where environmental incentive payments are more likely to be a cost-effective response by environmental funders. It is proposed that incentives can be used in two broad ways: to encourage trialling of new practices by landholders, or to compensate landholders for losses resulting from land-use changes. It appears that environmental funders often do not pay sufficient attention to the differences between these two approaches. The first approach only makes sense if the new practices are 'adoptable', and so are expected to remain attractive to landholders beyond the trialling phase. The importance of adoptability and...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental subsidies; Incentives; Externalities; Adoption of innovations; Environmental policy; Environmental Economics and Policy; Land Economics/Use; Q24; Q28; Q57; Q58; H23; H4.
Ano: 2006 URL: http://purl.umn.edu/25397
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CROP DIVERSITY AS THE DERIVED OUTCOME OF FARMERS' 'SURVIVAL FIRST' MOTIVES IN ETHIOPIA: WHAT ROLE FOR ON-FARM CONSERVATION OF SORGHUM GENETIC RESOURCES? AgEcon
Wale, Edilegnaw; Virchow, Detlef.
Crop genetic resources are the building blocks of sustainable agricultural development due to their relevance not only as inputs for variety development but also as indigenous crop insurance mechanisms through traditional variety portfolio management. Their continuous survival is, however, threatened by natural and human driven factors. This threat has induced the need for designing conservation measures. Among the in situ and ex situ conservation options available to conserve crop genetic resources, on-farm conservation has recently attracted enormous attention. To make this option operational, placing incentives (that link conservation with utilization) and removal of perverse incentives are believed to be crucial so that landraces of no immediate...
Tipo: Conference Paper or Presentation Palavras-chave: On-farm conservation; Sorghum genetic resources; Incentives; Poisson regression; Ethiopia; Crop Production/Industries.
Ano: 2003 URL: http://purl.umn.edu/25882
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The Cost-Effectiveness of Conservation Payments AgEcon
Ferraro, Paul J.; Simpson, R. David.
Intact ecosystems provide important global services. Many valuable ecosystems are located in low-income countries in which citizens are not in a position to provide global public goods gratis. To address this problem, international conservation and development donors have been making substantial investments in habitat conservation. Among the more common conservation schemes are interventions aimed at encouraging commercial activities that produce ecosystem services as joint products. We argue that it would be more cost-effective to pay for conservation performance directly. We use a simple yet general model to establish three conclusions. First, the overall cost of conservation is least when direct payments are employed. Second, the donor will generally...
Tipo: Working or Discussion Paper Palavras-chave: Biodiversity; Conservation; Cost-effective; Incentives; Agricultural Finance; H21; Q28.
Ano: 2000 URL: http://purl.umn.edu/10800
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A Theory of Firm Decline AgEcon
Gian Luca, Clementi; Cooley, Thomas; Di Giannatale, Sonia.
We study the problem of an investor that buys an equity stake in an entrepreneurial venture, under the assumption that the former cannot monitor the latter’s operations. The dynamics implied by the optimal incentive scheme is rich and quite different from that induced by other models of repeated moral hazard. In particular, our framework generates a rationale for firm decline. As young firms accumulate capital, the claims of both investor (outside equity) and entrepreneur (inside equity) increase. At some juncture, however, even as the latter keeps on growing, invested capital and firm value start declining and so does the value of outside equity. The reason is that incentive provision is costlier the wealthier the entrepreneur (the greater is inside...
Tipo: Working or Discussion Paper Palavras-chave: Principal Agent; Moral Hazard; Hidden Action; Incentives; Survival; Firm Dynamics; Financial Economics; D82; D86; D92; G32.
Ano: 2010 URL: http://purl.umn.edu/92788
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The Determinants of Household Recycling: A Material Specific Analysis of Recycling Program Features and Unit Pricing AgEcon
Jenkins, Robin R.; Martinez, Salvador A.; Palmer, Karen L.; Podolsky, Michael J..
This paper examines the impact of two popular solid waste programs on the percent recycled of several different materials found in the residential solid waste stream. We examine a unique, national, household-level data set containing information on the percent recycled of five different materials: glass bottles, plastic bottles, aluminum, newspaper, and yard waste. We find that access to curbside recycling has a significant and substantial positive effect on the percentage recycled of all five materials and that the level of this effect varies across different materials. The length of the recycling program's life has a significant and positive effect on two of the five materials and a mandatory recycling requirement does not affect any materials. The level...
Tipo: Working or Discussion Paper Palavras-chave: Solid waste; Recycling; Unit pricing; Incentives; Environmental Economics and Policy; Q28; H31.
Ano: 1999 URL: http://purl.umn.edu/10798
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INCENTIVES AND STANDARDS IN AGENCY CONTRACTS AgEcon
Chambers, Robert G..
This paper studies the structure of state-contingent contracts in the presence of moral hazard and multi-tasking. Necessary and sufficient conditions for the presence of multi-tasking to lead to fixed payments instead of incentive schemes are identified. It is shown that the primary determinant of whether multi-tasking leads to higher or lower powered incentives is the role that noncontractible outputs play in helping the agent deal with the production risk associated with the observable and contractible outputs. When the noncontractible outputs are socially undesirable and risk substitutes, standards are never optimal. If the noncontractible outputs are socially desirable, standards are never optimal if the noncontractible outputs play a...
Tipo: Working or Discussion Paper Palavras-chave: Incentives; Multi-tasking; Agency; Risk complementarity; Risk substitutability; Resource /Energy Economics and Policy; Risk and Uncertainty; D82; L23; L50.
Ano: 2000 URL: http://purl.umn.edu/28605
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Economic analysis of field afforestation and forest clearance for cultivation in Finland AgEcon
Hyytiainen, Kari; Leppanen, J.; Pahkasalo, T..
Rational land use decisions of private landowners are analysed in the framework of Common Agricultural Policy and other public support schemes effective in Finland in 2003. Net present values are computed for a marginal hectare of a typical Finnish farm. Three alternative land uses are considered: traditional cultivation of oats (Avena sativa L.), cultivation of reed canary grass (Phalaris Arundinacea L.) for energy production, and production of Norway spruce (Picea abies [L.] Karst.) timber. Both arable land and forested land are considered as initial states. Experimental data from 38 afforested stands and distance-independent individual-tree stand growth model are used for computing discounted net returns from forestry. Statistics on market prices,...
Tipo: Conference Paper or Presentation Palavras-chave: Common Agricultural Policy; Energy grass; Incentives; Land use; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/44178
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Externalities, Decreasing Returns, and Common Ownership AgEcon
Simpson, R. David.
Placing production units under common ownership is often suggested as a solution to the problem of externalities. This will not always be true when there are decreasing returns to scale. An atomistic industry could be more efficient than a monopoly in some instances. Even when the "optimal" industry configuration would involve a finite number of producers, no two may have appropriate incentives to combine. An omniscient and benign regulator can always assure a more efficient outcome than would result from the combination of private producers. Whether real-world regulators should be called upon, however, is less clear.
Tipo: Working or Discussion Paper Palavras-chave: Externalities; Mergers; Returns to scale; Incentives; Land Economics/Use; L23; Q24.
Ano: 2001 URL: http://purl.umn.edu/10457
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Impact of Beef Quality on Market Signals Transmitted by Grid Pricing AgEcon
Johnson, Heather C.; Ward, Clement E..
Value-based marketing is shaping cattle production; however, market signals differ dramatically depending on carcass quality. This study applies a two-stage coefficients of separate determination procedure to four regional fed cattle datasets sorted by grid value and by carcass quality attributes. Weight is the strongest signal sent when higher valued cattle and better quality cattle are sold on a grid. Quality characteristics send stronger signals when lower valued cattle and poorer quality cattle are sold on a grid. Producers of lower quality cattle can potentially gain $52 to $149 per head by improving quality and $113 to $150 per head by adding weight.
Tipo: Journal Article Palavras-chave: Beef; Cattle; Carcass; Quality; Coefficients of separate determination; Incentives; Market signals; Value-based marketing; Livestock Production/Industries; Marketing; Q11; Q13.
Ano: 2006 URL: http://purl.umn.edu/43750
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