Mechanism Of Government Cooperation In Region Environmental Governance Based On The Perspective Of Transaction Cost

Local government cooperation refers to cooperation between local governments which do not have subordinate relations, it mainly includes two aspects:one is cooperation between local governments at the same level; the other one is cooperation between local governments which are not at the same level but do not have subordinate relations. Based on the definition of core concepts, with the study angle of transaction cost theory in new institutional economics, this paper uses literature analysis, theoretical analysis, case analysis as study methods to study mechanism of local government cooperation in regional environmental governance, aims to improve mechanism of government cooperation and promote regional environmental governance. This paper analyses government cooperation process, talks about main body, stakeholders and environment in government cooperation, builds government cooperation theory model on the basis of transaction cost theory framework Williamson built and studies four types of transaction costs in the process of government cooperation and their action mechanism. The study shows that transaction costs effect the process of government cooperation, at the same time, there are mutual influence and mutual restriction relationship between various types of transaction costs. Moderate increase of one transaction cost may help to reduce other transaction costs, so minimum of a single transaction cost is not the ultimate goal of government cooperation, the minimum of the sum of various transaction costs is the goal which local government should pursue considering about cooperation cost. Local government will choose cooperation when the net income of cooperation is positive, when the total revenue and production cost are constant, transaction costs are lower, net income got from local government cooperation is higher, the enthusiasm to participate in cooperation will be higher. The characteristic of this study is to select transaction cost theory as study angle. Based on theoretical analysis and case analysis, this paper puts forward policy suggestions to improve mechanism of local government cooperation in regional environmental governance, firstly, government should build perfect information communication platform between governments to reduce information costs at each stage; secondly, mechanism of benefit sharing and compensation should be built to reduce contracting costs; then decision-making organizations and actuator organizations which can promote government cooperation should be built to reduce the occurrence of opportunistic behavior so as to reduce control costs; at the same time, government should improve participation degree of nonprofit organizations and the public to reduce coordination costs; finally, mechanism of supervision and related legal system should be improved to reduce monitoring costs.