Transaction Costs of Community-Based Coastal Resource Management: The Case of San Miguel Bay, Philippines

Abstract

This study estimates and analyzes the transaction costs (TC) associated with the implementation of a multilevel and multistakeholder program such as a community-based coastal resource management program. Results show that TC accounted for 37% of the total project cost (TPC). The instability of financial support resulted in high TC, which was estimated to be 86% of the TPC during the implementation phase of the coastal resource management projects. The share of the total TC was highest among the people's organizations (POs) that were the beneficiaries of the program. The number of people involved in the transactions, the number of activities undertaken, and the success index of the POs were among the factors significantly affecting the TC. Analysis also shows that while higher TC led to higher success index of the POs at the initial stage of the project implementation, an increasing level of TC eventually slowed down their performance.