Desertification Control System, Transaction Cost Analysis

The economic study was under the supposition condition of "zero transaction cost" for a long time, thought that the transaction process does not have the friction and does not have the expense, as a result, the transaction cost which holds a very great proportion in the total cost are often neglected. Some of the government's ecology policies about desertification aroused the farmer'ecology enthusiasm, the vegetation obtains a certain extent restoration. However, some of the ecology government policies have neglected the system movement transaction cost and the system object behavior pattern, caused the system's defeat finally. Take the policies of Wu Shen as an example, the policy of "Returning Farmland to Forest" which on the area desertification land implements well to return the grass, the ecology compensation aroused the farmer ecology enthusiasm to the policy. But the good forage grass base were not completely finished before the Enclosure policy carried out, the peasant household suddenly faces to the herd policy and feel helpless, they can only sell out the majority of sheep, which will cause next year's income to drop. After the herd, the peasant who does not have grass herds the feed originates to maintain the livelihood, despite affronts the herd policy, in does not have in the situation which prairie police patrol to steal the herd. If the peasants are discovered at first time, they receives the education and criticism, if continues to affront again, they will be imposed 5-50 Yuan fines. These procedures cause them to oppose in varying degrees endures the herd policy, increased the implementation difficulty of the herd policy the. Therefore the herd polity in mostly is defeated, nearly all peasant households have the stealing behavior.This article uses the transaction cost analysis method of Institutional Economics, through the peasant household investigation and governmental agency interview way gain data, then consult statistical returns. We estimated the transaction costs of "Returning Farmland to Forest" policy of two villages of Wudinghe River town and the whole year of Elosure policy of Wushenzhao Town. The transaction cost proved that if the policy transaction cost is quite high, but the policy is in itself not accepted by the common people, then the final result will certainly to be the policy defeat. Therefore, from transaction costs angle, analysis of government's ecology policy's validity before policy is necessary and will avoid defeat of the policy by the huge transaction cost In addition, the use of gambling analysis will help us not only in analysis of internal mechanism of desertification, but has the important meaning to the government's strategic decision.