Measurement of transaction cost of rest-grazing policy

A package of juristictive and administrative measures for conserving rest-grazing meadow ecosystems has been developed by various organs of government. Although much research has already been done in this area, it was still worthwhile and absolutely essential to assess the performance efficacy of existing measures on rest-grazing meadow ecosystems. This article attempted to probe into the assessment approach of existing measures about ecosystem governance, inherent interactions between jurisdictive/administrative measures and ecological protection, and the reason why unique measures have different efficacies. We studied existing measures that governed deserted meadows and introduced transaction-cost analysis approaches. In the study, transaction cost was identified in five parts-information search cost, contract signing cost, governance and operation cost, compliance and supervision cost, and compensation and remedy cost. Distinguished indicators were developed for each part based on the key nodes upon which the measures were conducted in the area and hence a total of 21 indicators were used. For Uxin Banner of Inner Mongolia Autonomous Region, the total transaction cost was 906.05 Yuan·hm^-2 per year according to investigation data. From this amount, 116.48 Yuan·hm^-2 (12.86% of total transaction cost) was directly paid as compensatory fee by government to herder households. Then herder households in turn paid 728.02 Yuan·hm^-2 (80.35% of total transaction cost) per year. Rather than government, the main investor in rest-grazing ecosystems was demonstratively herder households. On the other hand, direct government payment or opportunity cost of rest-grazing ecosystems was only 23.3%. Consequently, herder household interests were weakened, increasing stolen grazing rate in rest-grazing ecosystems to 100%. Measures of rest-grazing were therefore meaningless as long as government direct payments remained lower than 1/4 of the opportunity cost of rest-grazing ecosystems. Transaction cost analysis of jurisdictive and/or administrative measures addressing ecosystem problems provided monitoring and assessment perspectives to conservation measures of meadow ecosystems.