Framework for Assessing Environmental Management in Agriculture

This paper incorporates interdisciplinary New Institutional Economics and suggests a holistic framework for assessing the forms and efficiency of environmental management in agriculture. First, it defines environmental management as a specific system of social order regulating behaviour and relations of various agents related to natural environment, and environmental management in agriculture as eco-management associated with agricultural production. Second, it specifies spectrum of modes and mechanisms of eco-management comprising: institutional environment, market, private, collective, public and hybrid. Third, it suggests stages in analysis and improvement of environmental management in agriculture including: identification of problems, and risks associated with natural environment; assessment of efficiency of available and feasible modes, and specifying cases of market, private, and public failures; assessment of comparative efficiency of alternative modes for new public intervention and selection of the most efficient one(s). Forth, it classifies personal, institutional, technological, natural, and transaction costs factors of management choice. Finally, it builds a principle governance matrix with the most effective market, private, and public modes taking into account the critical dimensions of eco-activity and transactions (appropriability, assets specificity, uncertainty and frequency), and their potential to coordinate and stimulate eco-activities, meet preferences and reconcile conflicts of individuals, protect eco-rights and investments, overcome uncertainty and risk, assure socially desirable level of environmental protection, and minimize overall (implementing, third-party and transacting) costs