Transaction Costs of Agri-Environmental Policies in Vietnam
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Vietnam faces a number of important environmental and resource issues
including deforestation, loss of biodiversity, and water and air pollution. In developing
countries the conflict between growth and protecting the environment is particularly
acute. This paper provides an overview of existing agri-environmental policies and
institutions in Vietnam. It then analyses policy instruments that have been employed to
reduce pesticide pollution and discusses the factors affecting the magnitude of transaction
costs associated with those policies. A major factor is the large number of microenterprises
involved, both farms and input suppliers.