Influences of transaction costs in environmental policy

Environmental Policy Making : Liability for Externalities in the Presence of Transaction Costs

The existence of a theoretical market solution to the problem of externalities has been generally accepted since the seminal contribution of Coase. 1 In the absence of transaction costs, the potential for bargaining between concerned parties has the effect of internalizing any externality. The burden of legal liability for external effects does not therefore affect the attainment of Pareto effi...

Transaction Costs and Environmental Policy: An Assessment Framework and Literature Review

This article develops a framework for environmental policy analysis based on an encompassing assessment of transaction costs. This approach emphasizes the ex ante costs of establishing environmental entitlements, and the ex post costs of administrating, monitoring, and enforcing them. The framework is used to organize a literature review which addresses policy design and instrument choice, as w...

The Political Transaction Costs and Uncertainties of Establishing Environmental Rights

Legal Analysis of bank in the Iranian commercial market based on the theory of transaction costs

Understanding the necessity of establishing a bank in Iran requires a correct realizing of the mechanism of the money market in an era in which banks had no place or position. At that time distrusting on the borrower credits, lack of reliable information about the number and place of lenders, rising interest rates and the prevalence of high- interest borrowing were some of the costs that transa...

The Efficiency Costs of Voluntary Agreements in Environmental Policy

Voluntary agreements (VA) in environmental policy are gaining in popularity. The reason is that governments perceive them as a cost-efficient instrument preferred by industries to fiscal measures such as taxes or auctioned permits. In this paper we dispute the notion that VA programs are cost-efficient policy instruments. In our analytical framework we demonstrate that VA programs can induce si...