Improving environmental decisions: A transaction-costs story

David Pannell, A.M. Roberts, G. Park, J.K. Alexander

Research output: Contribution to journalArticle

24 Citations (Scopus)
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Abstract

A multidisciplinary team of researchers made efforts to influence the design and implementation of environmental policy in Australia. A focus of these efforts was the development of the Investment Framework for Environmental Resources (INFFER). In addition, the team undertook a range of communication activities, training, user support, and participation in committees and enquiries. Transaction costs were relevant to these efforts in a variety of ways. Environmental managers perceived INFFER to involve relatively high transaction costs. A balance was struck between the system having simplicity (and low transaction costs) and delivering environmental benefits. Transaction costs were factored into the planning and prioritisation processes developed. For example, public and private transaction costs are accounted for in the calculation of benefit:cost ratios and in the choice of policy mechanisms. There are diverse roles that transaction costs play in the processes of developing, implementing and influencing environmental policy programmes. A key observation is that appropriate strategic investment in transaction costs can improve decisions and increase net benefits from an environmental programme. A well-designed decision process can involve incurring transaction costs at one stage in order to save transaction costs at a later stage. © 2012 Elsevier B.V..
Original languageEnglish
Pages (from-to)244-252
JournalEcological Economics
Volume88
DOIs
Publication statusPublished - 2013

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transaction cost
environmental policy
decision
Transaction costs
prioritization
resource
communication

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Pannell, David ; Roberts, A.M. ; Park, G. ; Alexander, J.K. / Improving environmental decisions: A transaction-costs story. In: Ecological Economics. 2013 ; Vol. 88. pp. 244-252.
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Improving environmental decisions: A transaction-costs story. / Pannell, David; Roberts, A.M.; Park, G.; Alexander, J.K.

In: Ecological Economics, Vol. 88, 2013, p. 244-252.

Research output: Contribution to journalArticle

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