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European Review of Agricultural Economics Advance Access originally published online on October 8, 2008
European Review of Agricultural Economics 2008 35(3):357-384; doi:10.1093/erae/jbn019
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© Oxford University Press and Foundation for the European Review of Agricultural Economics 2008; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org

This article appears in the following European Review of Agriculture Economics issue: Special Issue: Plenary Papers of the XIIth EAAE Congress, Ghent, 2008; Theme: People, Food and Environments: Global Trends and European Strategies [View the issue table of contents]

Particular requirements for institutional analysis in nature-related sectors

Konrad Hagedorn

Humboldt University Berlin, Germany

Corresponding author: Konrad Hagedorn, Department of Agricultural Economics and Social Sciences, Division of Resource Economics, Humboldt University Berlin, Philippstr. 13, D-10099 Berlin, Germany. E-mail: k.hagedorn{at}agrar.hu-berlin.de

Agriculture, horticulture, fishery and forestry are nature-related sectors that interact frequently with natural systems. This interaction represents a source of enforcement problems and transaction costs in the context of governing transactions. Institutional analytical frameworks used in agricultural economics should consider the particular properties of transactions involving natural systems. For ordering nature-related transactions, we propose a heuristic framework based on two dimensions: ‘modularity and decomposability of structures’ and ‘functional interdependence of processes’. It serves as a starting point for establishing a typology ranging from ‘atomistic-isolated transactions’ to ‘complex-interconnected transactions’. The complex process of institutionalising such transactions is decomposed into conceptual categories by means of a ‘transaction-interdependence cycle’.

Keywords: institutions, governance, natural-social systems interaction, nature-related transactions, typology

JEL classification: B52, D02, D23, Q10, H41


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