It has been shown in previous studies that transaction costs (TC) of agri-environmental policy measures often are very large both in absolute terms and as a share of payments. As agri-environmental policy measures make up an increasingly large share of agricultural policies, not least within the European Union, it is becoming ever more important to improve the knowledge about the factors determining the level of transaction costs. This paper investigates the TC determinants of one Swedish agri-environmental policy measure. More specifically, it aims to investigate if the level of TC is attributable to economic factors, such as pasture density and distances, or if political factors, such as lobby groups and political majorities at the county level, influence the costs. To evaluate if the results are robust with respect to alterations in model specifications, a version of the extreme bounds analysis is applied. Although initial results indicate that political parties influence the level of transaction costs, the extreme bounds analysis reveals that those results are fragile. It shows that five of the economic variables are robust with respect to model specifications, but none of the political variables is.

The early adoption of the legume Arachis pintoi was studied in the State of Caquetá, located in Colombia’s Amazon region. Data came from 174 farmers randomly surveyed within the area of influence of Nestlé, a multinational milk-processing company. In addition, 52 farmers who had already adopted Arachis were surveyed separately to study their experiences, difficulties, and prospects with the legume. Results indicated that livestock activity is undergoing dynamic intensification. Since 1986, milk production per lactation has increased by 31%, cow fertility by 5%, herd size by 18%, and the area sown to improved pastures by 165%. Current adoption rate of Arachis is about 9.2%, with an estimated 3000 ha already planted. Two-thirds of farmers who had adopted Arachis said they would double, in the next year, the average area sown (9.6 ha/farm). Adopters tended to have larger farms and to have invested twice the capital than did non-adopters. The cost of seed for both grass and legume accounted for 40-52% of total establishment costs, making seed quality decisive in guaranteeing success. To promote Arachis, more information on the plant and its management in association with grasses must be disseminated. Mechanisms should also be sought to reduce establishment costs.

Same public goods can only be produced jointly with private goods. This paper focuses on the biological diversity that could be produced on semi-natural pastures through the assistance of grazing animals. The question that is being investigated is what shapes the total and marginal cost functions for biological diversity production on semi-natural pastures have if private goods are already being produced using livestock at farms near the pastures. The empirical analysis shows that a quadratic function describes the costs well and that the production is characterized by increasing marginal costs.

Results of the study showed the following: 1) There exists an extremely broad range of agricultural and agroforestry land-use alternatives to the current slash-and-burn systems but much work needs to be done. 2) There is a major need for scientific quantification of the many attributes of the most promising systems. 3) There is a need for national policy to discourage use of environmentally destructive systems and to encourage longer-term investment by finding solution to land tenure uncertainty. Innovative marketing approaches that open large market segments for agroforestry fruit products (such as the soft drink market) have been extremely successful but not well documented in many parts of Asia. 4) There is a need to "harness" and distribute the best farmers knowledge about integrated systems, but have little successful experience with this. 5) Finally, scientist must realize that the scientific knowledge base covering the range of options is frightfully narrow, and the scope for learning is enormous. The success stories of imaginative application of the many options give hope, but at the same time stretch our abilities, to understand and to properly apply the numerous technologies waiting for more widespread use