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Symposium 2002 : Cooperative Program in Agricultural Marketing and Business

Symposium 2002 : Cooperative Program in Agricultural Marketing and Business. Sustainability Through Markets: What is the role of Environmental Cooperatives in Alberta. June 5, 2002 Kangweon Nam

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Symposium 2002 : Cooperative Program in Agricultural Marketing and Business

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  1. Symposium 2002 : Cooperative Program in Agricultural Marketing and Business Sustainability Through Markets: What is the role of Environmental Cooperatives in Alberta. June 5, 2002 Kangweon Nam Ellen Goddard Peter Boxall

  2. Environmentalissues in Alberta :natural resources dependent economy Types of issues • Soil conservation and quality • Biodiversity (Habitat) • Recycling • Energy efficiency • Deforestation and fragmentation of forest • Greenhouse gas emission (e.g. coal fired power, oil sands, petroleum) • Water conservation and quality South & North • Waste management livestock waste management

  3. Types of agencies currently operating in Alberta • Government (regulator) - provincial (NRCB, EUB, ACA, AESA, AENV, AAFRD, SRD, etc) - county and municipal - public research institute - local regional extension • Industry (regulatee) - energy sector (oil and gas, petroleum and power plant) - forestry sector (timber harvesting, pulp and paper) - agricultural sector (production and processing ) - urban commercial and developer • Environmental NGOs (concerned public: third power) - community based group (watershed group, conservation group, aboriginal resource management group) - provincial, national & transnational (Foundation & Charity, Federation of Alberta naturalist, Toxic watch, Pembina Institute, WWF, CPAWA, etc)

  4. Pros and Cons of Voluntary Versus Involuntary Regulation • Pros ( industry & regulator ) - industries’ environmental know-how - reducing compliance cost for gov. and increasing cost effectiveness for business - promoting democratic values and participation • Cons ( mainly environmental group) - firms’ strategic behavior to avoid or defer liabilities - free rider problem of non-participating group - lower standards and limits cause deferral of environmental success (improving technology VS. protection technology)

  5. Objectives • To identify what the concept and rationale, and organizational structure of the environmental cooperative is. • To assess the environmental issues in Alberta and current actions being taken on. • To develop a plan or management practice for an environmental cooperative • To investigate with stakeholders in a local environmental issues the potential success factors of the proposed environmental cooperative

  6. Definitions and Types • Definitions: An organization in which the members see a common interest in producing environmental quality for pay, under membership- based organizational structure. (as club governance) An innovative form of participative cooperative governance based at local regional level, which promote and organize activities to economic and environmental sustainability. (as institutional arrangements) • Types ( based on main activity) Waste management co-op / Conservation and landscape co-op/ Watershed management co-op/ Multifunctional environmental co-op/ Conservation housing co-op/ Green energy co-op

  7. VEL (Vereniging Eastermar’s Landsdouwe) • Formed in 1992 • Local farmers and extension reacted to strict regulation. • With voluntary regulation agreement, VEL developed environmentally compatible farming practices.

  8. Hoedads Co-op as anPrototype in North America • Hoedads Co-op in Eugene, Oregon(1970) • Mission: egalitarian, environmental and political ideal • Activities: tree planting, forest thinning, seed collection and other reforest services. (as sustainable forestry) • Cooperative structure employed for effective, stable business organization. • In 1974, member size is about 100-125 • In 1980, 300 members, $2M contract volume. • Expertise for operating budget, rules, compensation, administrative functions, election, optimal size, organic food sale • In mid 80s, dissolved and in 1997, reorganized with Hoedads foundation.

  9. Cases in U.S.

  10. Methods of study Step 1:  develop a detailed plan for an environmental cooperative structure in relation to design principles such as limiting the problems resulting from information asymmetry and lack of trust.  include membership rights and responsibilities, financial commitments. Step 2:  stakeholders in a local environmental issue will be used to assess the potential success factors of the proposed environmental cooperative through focus group and surveys.  environmental cooperative will be compared / contrasted to other possible regulatory agencies.

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