The European Union's Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) has introduced auctioning as a new instrument for granting agri-environmental payments and awarding conservation contracts. The article presents an evaluation of calls for tenders with respect to ecological services in agrarian landscapes in a case study area in Germany. Results from two auctions clarify that differentiated offers were made by the farmers in the model-region. This comprises a practical potential for a more efficient use of public funds by the use of auctions compared to a uniform premium, as it is used in current agri-environmental programs. Copyright 2007 die Autoren Journal compilation 2007, Verein für Socialpolitik und Blackwell Publishing Ltd.
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