Volker Beckmann

Deciding how to decide on agri-environmental schemes: the political economy of subsidiarity, decentralisation and participation in the European Union

Since 1992 the provision of agri-environmental schemes (AESs) has been obligatory for member states of the European Union. However, decisions concerning the actual design of schemes and measures are left to member states who have to integrate this policy within their administrative structures and to comply with the general rules laid down in the EU rural development regulations. Over time, the respective council regulations have increasingly encouraged member states to design agri-environmental policy in a sub-national, decentralised and participatory way. However, the response to these opportunities has been quite diverse amongst the member states. This paper presents the results of a unique expert survey in nine different member states, focusing on decentralisation and participation. The results show that the way in which decisions are made affects the environmental effectiveness of AES. In particular, the involvement of actors at a local level and the participation of environmental NGOs have a positive effect on the environmental effectiveness of AES. Therefore, it is not surprising that most actors involved in decision making surrounding AESs are in favour of further decentralisation and participation in order to tackle agri-environmental problems. However, actors from the agricultural administration and agricultural associations, which are the most influential groups in terms of the design of AESs, oppose extending participation to the local level and to environmental associations.

Ex-Ante Regulation and Ex-Post Liability Under Uncertainty and Irreversibility: Governing the Coexistence of Gm Crops

Ex-ante regulations and ex-post liabilities for using a new technology will induce additional costs for adopters. The standard model is advanced by including irreversibility and uncertainty and taking into account transaction costs of negotiating possible cost reductions. The case analysed is the coexistence policy for GM crops in the European Union. Results show, the design of the rules and regulations can provide strong incentives for regional agglomeration of GM and non-GM farmers.

Diversity of practical quota systems for farmland preservation: a multicountry comparison and analysis

Diverse quota systems are designed and implemented in different countries to preserve farmland. Choosing a quota system for farmland preservation is thus an important issue for policy makers and researchers. In order to explain this diversity and reveal shared principles for the choice of a quota system in practice, we compare typical quota arrangements in four countries through a model of transaction cost economics (TCE). We examine agricultural zoning in the Netherlands, the transferable development right in the US, command-and-control quotas and their supplemented trading mode in China, and the debated tradable planning permits for land-use control in Germany. Our comparison not only shows that extending TCE into tradable quota theory is feasible, but also compares experience with the tools of farmland preservation across the four countries. Furthermore, the shared principles we discover could also be reference points for the rest of the world.

Governing the Co-Existence of GM Crops: Ex-Ante Regulation and Ex-Post Liability under Uncertainty and Irreversibility

The future institutional environment for the co-existence of genetically modified (GM) crops, conventional crops and organic crops in Europe combines measures of ex-ante regulation and ex-post liability rules. Against this background we ask the following two questions: How does ex-ante regulation and ex-post liability under irreversibility and uncertainty affect the adoption of GM crops? What are the implications for regional agglomeration of GM and non-GM crops? Ex-ante regulations and ex-post liabilities for using GM crops will induce additional costs. These costs are modelled in a classical way. The model is advanced by including irreversibility and uncertainty and taking into account transaction costs of negotiating possible solutions with neighbouring farmers which are assumed to be partially irreversible. The results show that the design of ex-ante regulation and ex-post liability increases the value of waiting and results in less immediate adoption of the GM technology. Additionally, the rules and regulations in the EU do provide incentives for the regional agglomeration of GM and non-GM crops that are mainly driven by the irreversibility effect of the ex-ante regulatory and ex-post liability costs.

Coexistence of Genetically Modified (GM) and Non-Modified (non-GM) crops: Are the Two Main Property Rights Regimes Equivalent with Respect to the Coexistence Value?

Two major regulatory regimes for planting of genetically modified (GM) crops have emerged: one where the property rights for growing GM crops are mainly with the GM farmer and another where the property rights are mainly with the non-GM farmer. In this contribution, the regulatory model chosen by Canada and the United States is compared with that of the EU and its variants, analyzed from an efficiency point of view. While the general view in the literature on ex-ante regulation versus ex-post liability rules under uncertainty holds that the most efficient regulatory regime depends on the specific case under investigation, we have investigated the analytical conditions for one or the other regulatory system to be more efficient, concluding that the property rights systems are almost equivalent, so long as transaction costs are not prohibitively high and using the court system is costless. As using the court system is not cost free, however, we hold that property rights regimes where the GM farmer is not liable are preferable from a social welfare point of view.

Governing Farmland Conversion for Urban Development from the Perspective of Transaction Cost Economics

This paper considers farmland conversion for the purpose of urban development as a series of transactions and discusses the determinants of appropriate governance structures for governing farmland conversion in terms of process efficiency. Towards this end, the paper develops a theoretical framework for analysing the process of farmland conversion based on transaction cost economics. The framework covers transactions, transaction attributes, governance structures and performance with the aim of minimising transaction costs. The paper also demonstrates the usability of the framework by creating a corresponding quantitative model for a case study in China. Furthermore, it identifies factors that influence the transaction costs associated with farmland conversion in China and explains why the related governance structures are chosen.

Zur ökonomischen Theorie der Transformation von Produktivgenossenschaften

Die Entwicklungen in Osteuropa haben das Interesse an Produktivgenossenschaften erneut geweckt. In der Bauwirtschaft, im Handwerk und vor allem in der Landwirtschaft Osteuropas war und ist die Unternehmensform der Produktivgenossenschaft verbreitet. Angesichts der Transformation der sozialistischen Wirtschaftssysteme in marktwirtschaftliche stellt sich die Frage der Entwicklung der Produktivgenossenschaften unter marktwirtschaftlichen Bedingungen mit neuer Dringlichkeit. Diese Frage wird freilich sehr kontrovers diskutiert. Dieser Beitrag hat sich zum Ziel gesetzt, die ökonomische Theorie der Produktivgenossenschaft bezogen auf ihre Entwicklung unter marktwirtschaftlichen Bedingungen zu diskutieren, um daraus Aussagen über die zukünftige Entwicklung dieser Unternehmensform in den Staaten Osteuropas abzuleiten. Der Aufbau ist wie folgt: Ausgangspunkt der Darstellung ist das von O p p e n h e i m e r geprägte Transformationsgesetz. Anschließend werden zwei theoretische Ansätze dargestellt, die eine ökonomische Erklärung für die Transformation der Produktivgenossenschaft leisten: die neoklassische Firmentheorie und die Institutionentheorie. Es wird sich zeigen, daß beide Theorieansätze in der Lage sind, das Transformationsgesetz theoretisch zu untermauern, aber auch zu erweitern. Vor diesem Hintergrund wird die Frage der möglichen Wettbewerbsfähigkeit und Stabilität der Produktivgenossenschaft aufgegrif-

Analysing Institutions: What Method to Apply?

This paper seeks to contribute to the ongoing debate about methods of institutional analysis. How to empirically analyse institutions and institutional change? Is there a superior method when it comes to institutional questions? We discuss these issues for the most common methods in empirical institutional analysis, i.e. case studies, econometrics, experiments and agent-based modelling. Building on Alston (1996), with reference to Williamson’s (2000) overview of institutional economics, we identify level of social analysis and research questions as two important dimensions that may guide methodological decision. Distinguishing between effects, causes and processes of institutional choice and change as the basic research questions in institutional analysis, and combining these with the four levels of social analysis (i.e., social embeddedness, institutional environment, governance structures, and resource allocation) helps to precisely distinguish between differently oriented investigations within a common theme. In addition, we discuss how the time horizon of a study, the observability and measurability of the institutions examined, and the roles that actors play therein significantly constrain possible choice sets among methods. In doing so, we identify trade-offs as well as important complementarities between applying different methods.

Politische und ökonomische Rahmenbedingungen für die Entwicklung ländlicher Räume in den neuen Bundesländern

Die Lebenslagen der Menschen in den neuen Bundeslandern werden in der nach wie vor anhaltenden Umbruchphase besonders von den wirtschaftlichen Gegebenheiten und Veranderungen bestimmt. Diese wiederum unterliegen in hohem Mase dem Einflus politischer Masnahmen, insbesondere denjenigen der Wirtschafts- und Sozialpolitik. Fur die landlichen Raume spielt daruber hinaus die Agrarpolitik fur die Gestaltung des institutionellen und okonomischen Wandels eine zentrale Rolle. Insbesondere die speziellen Instrumente zur Bewaltigung der Transformationsprobleme in der Landwirtschaft und im Gartenbau sind in diesem Zusammenhang von Bedeutung. Ziel der Expertise ist es daher, Informationen uber die in diesem Bereich eingefuhrten politischen Masnahmen und deren okonomische Wirkungsweise zusammenzutragen.

Institutions and Sustainability: Introduction and Overview

The analysis of institutions in the field of nature-related human endeavours has always been the key element of Konrad Hagedorn’s academic writing and teaching. Pushing the frontiers of institutional economics to integrate sustainability concerns, he pioneered the reflection on institutions, values and norms in agricultural economics. The aim of this introduction is to outline the main facets of his conceptual and applied work, show the impact and inspiration it has had on the work of other academics in the area of institutional analysis, introduce the papers collected in this volume, and look ahead to further challenges to come.