Williamson's systematic treatment of transaction costs in explaining governance structures has rarely been applied to the field of environmental economics. The aim of this chapter is to address this oversight by analysing how transaction cost economics can help choose among environmental policy...

Environmental economics has employed the seminal contribution of Ronald H. Coase (1960) intensively but has remained relatively unaffected by the contributions of perhaps his most influential follower, Oliver E. Williamson. As an initial step in addressing this oversight, we apply the analytical...