Market governance mechanism: Difference between revisions
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A '''Market Governance Mechanism''' (MGM) is a set of formal or informal rules that have been consciously designed to change the behaviour of various economic actors - including individuals, businesses, organisations and governments - and to encourage [[sustainable development]]. <ref>{{cite web|url=http://shapingsustainablemarkets.iied.org/ |title=Home | Shaping Sustainable Markets |publisher=Shapingsustainablemarkets.iied.org |date= |accessdate=2012-03-09}}</ref> |
A '''Market Governance Mechanism''' (MGM) is a set of formal or informal rules that have been consciously designed to change the behaviour of various economic actors - including individuals, businesses, organisations and governments - and to encourage [[sustainable development]]. <ref>{{cite web|url=http://shapingsustainablemarkets.iied.org/ |title=Home | Shaping Sustainable Markets |publisher=Shapingsustainablemarkets.iied.org |date= |accessdate=2012-03-09}}</ref> |
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Two well known mechanisms include [[fair trade certification]] and the [[European Union Emission Trading System]], meanwhile other examples could be [[payment for ecosystem services|Payment for Ecosystem Services]] (PES), subsidies or taxes. |
Two well known mechanisms include [[fair trade certification|Fairtrade]] and the [[European Union Emission Trading System]], meanwhile other examples could be [[payment for ecosystem services|Payment for Ecosystem Services]] (PES), subsidies or taxes. |
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However, MGMs are not to be confused with [[Market-based environmental policy instruments|market-based instruments]], for MGMs, as a group, includes command and control regulations as well as regulatory economics. As such, MGM is a broader classification. |
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== History == |
== History == |
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The term "market governance mechanism" was first used by Baysinger and Butler (1985) when writing about the role of corporate law in the theory of the firm.<ref name="Baysinger">[http://www.jstor.org/discover/10.2307/725469?uid=3738176&uid=2&uid=4&sid=47698715377177], Baysinger, B. and Butler, H. 1985. The role of corporate law in the theory of the firm. The University of Chicago.</ref> More recently Amashi ''et al.,'' used the term to discuss how corporate social responsibility can be used to correct market failures.<ref name="Amaeshi">[http://wizard.korea.ac.kr/user/aic/data/Corporate%20Social%20Resposibility%20as%20a%20Market%20Governance%20Mechanism_Any%20implications%20for%20Corporate%20Governance%20in%20Emerging%20Economies.pdf], Amaeshi, K., Osuji, O., Doh., J. (undated) Corporate Social Responsibility as a Market Governance Mechanism: Any implications for Corporate Governance in Emerging Economies? University of Edinburgh.</ref> And now, Shaping Sustainable Markets, a research initiative from the Sustainable Markets Group at the International Institute of Environment and Development, uses the term widely and has created a typology<ref>{{cite paper|url=http://shapingsustainablemarkets.iied.org/sites/shapingsustainablemarkets.iied.org/files/20110520%20Research%20prospectus.pdf |title=Shaping Sustainable Markets: Research Prospectus |publisher=International Institute for Environment and Development |date=May 2011 |author=Blackmore, Emma |accessdate=2012-03-09}}</ref> to frame its work on |
The term "market governance mechanism" was first used by Baysinger and Butler (1985) when writing about the role of corporate law in the theory of the firm.<ref name="Baysinger">[http://www.jstor.org/discover/10.2307/725469?uid=3738176&uid=2&uid=4&sid=47698715377177], Baysinger, B. and Butler, H. 1985. The role of corporate law in the theory of the firm. The University of Chicago.</ref> More recently Amashi ''et al.,'' used the term to discuss how corporate social responsibility can be used to correct market failures.<ref name="Amaeshi">[http://wizard.korea.ac.kr/user/aic/data/Corporate%20Social%20Resposibility%20as%20a%20Market%20Governance%20Mechanism_Any%20implications%20for%20Corporate%20Governance%20in%20Emerging%20Economies.pdf], Amaeshi, K., Osuji, O., Doh., J. (undated) Corporate Social Responsibility as a Market Governance Mechanism: Any implications for Corporate Governance in Emerging Economies? University of Edinburgh.</ref> And now, Shaping Sustainable Markets, a research initiative from the Sustainable Markets Group at the International Institute of Environment and Development, uses the term widely and has created a typology<ref>{{cite paper|url=http://shapingsustainablemarkets.iied.org/sites/shapingsustainablemarkets.iied.org/files/20110520%20Research%20prospectus.pdf |title=Shaping Sustainable Markets: Research Prospectus |publisher=International Institute for Environment and Development |date=May 2011 |author=Blackmore, Emma |accessdate=2012-03-09}}</ref> to frame its work on [[sustainable development]]. They have also created a database of MGMs in which over 150 mechanisms are profiled.<ref>{{citeweb|url=http://shapingsustainablemarkets.iied.org/ |title= | Shaping Sustainable Markets|publisher=Shapingsustainablemarkets.iied.org |date= |accessdate=2012-03-09}}</ref> |
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== References == |
== References == |
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Revision as of 16:09, 2 December 2013
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A Market Governance Mechanism (MGM) is a set of formal or informal rules that have been consciously designed to change the behaviour of various economic actors - including individuals, businesses, organisations and governments - and to encourage sustainable development. [1]
Two well known mechanisms include Fairtrade and the European Union Emission Trading System, meanwhile other examples could be Payment for Ecosystem Services (PES), subsidies or taxes.
However, MGMs are not to be confused with market-based instruments, for MGMs, as a group, includes command and control regulations as well as regulatory economics. As such, MGM is a broader classification.
History
The term "market governance mechanism" was first used by Baysinger and Butler (1985) when writing about the role of corporate law in the theory of the firm.[2] More recently Amashi et al., used the term to discuss how corporate social responsibility can be used to correct market failures.[3] And now, Shaping Sustainable Markets, a research initiative from the Sustainable Markets Group at the International Institute of Environment and Development, uses the term widely and has created a typology[4] to frame its work on sustainable development. They have also created a database of MGMs in which over 150 mechanisms are profiled.[5]
References
- ^ "Home | Shaping Sustainable Markets". Shapingsustainablemarkets.iied.org. Retrieved 2012-03-09.
- ^ [1], Baysinger, B. and Butler, H. 1985. The role of corporate law in the theory of the firm. The University of Chicago.
- ^ [2], Amaeshi, K., Osuji, O., Doh., J. (undated) Corporate Social Responsibility as a Market Governance Mechanism: Any implications for Corporate Governance in Emerging Economies? University of Edinburgh.
- ^ Blackmore, Emma (May 2011). "Shaping Sustainable Markets: Research Prospectus" (PDF). International Institute for Environment and Development. Retrieved 2012-03-09.
{{cite journal}}: Cite journal requires|journal=(help) - ^ "| Shaping Sustainable Markets". Shapingsustainablemarkets.iied.org. Retrieved 2012-03-09.
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