Advanced Search
MyIDEAS: Login

Auction Design for the Private Provision of Public Goods in Developing Countries: Lessons from Payments for Environmental Services in Malawi and Indonesia

Contents:

Author Info

  • Ajayi, Oluyede C.
  • Jack, B. Kelsey
  • Leimona, Beria

Abstract

Payments for environmental services programs use direct incentives to improve the environmental impacts of private land use decisions. An auction offers an approach to efficiently allocating contracts among least-cost landholders, which can improve the overall cost-effectiveness of the approach. However, experiences with auctions in developing country settings are limited. We compare the results of two case studies that use auctions to allocate payments for environmental service contracts in Indonesia and Malawi. While the settings and the contracts differ, regularities in auction design allow comparisons and general lessons about the application of auctions to payments for environmental services programs.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/pii/S0305750X1100310X
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 40 (2012)
Issue (Month): 6 ()
Pages: 1213-1223

as in new window
Handle: RePEc:eee:wdevel:v:40:y:2012:i:6:p:1213-1223

Contact details of provider:
Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: payments for environmental services; cost-effectiveness; auction; land use; Malawi; Indonesia;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
  2. Wunder, Sven & Engel, Stefanie & Pagiola, Stefano, 2008. "Taking stock: A comparative analysis of payments for environmental services programs in developed and developing countries," Ecological Economics, Elsevier, vol. 65(4), pages 834-852, May.
  3. Stavins Robert N., 1995. "Transaction Costs and Tradeable Permits," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 133-148, September.
  4. Bulte, Erwin H. & Lipper, Leslie & Stringer, Randy & Zilberman, David, 2008. "Payments for ecosystem services and poverty reduction: concepts, issues, and empirical perspectives," Environment and Development Economics, Cambridge University Press, vol. 13(03), pages 245-254, June.
  5. John A. List, 2003. "Does Market Experience Eliminate Market Anomalies?," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 41-71, February.
  6. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-417, November.
  7. John A. List & Jason F. Shogren, 1999. "Price Information and Bidding Behavior in Repeated Second-Price Auctions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 942-949.
  8. Steven Schilizzi & Uwe Latacz-Lohmann, 2007. "Assessing the Performance of Conservation Auctions: An Experimental Study," Land Economics, University of Wisconsin Press, vol. 83(4), pages 497-515.
  9. Zabel, Astrid & Roe, Brian, 2009. "Optimal design of pro-conservation incentives," Ecological Economics, Elsevier, vol. 69(1), pages 126-134, November.
  10. Zilberman, David & Lipper, Leslie & Mccarthy, Nancy, 2008. "When could payments for environmental services benefit the poor?," Environment and Development Economics, Cambridge University Press, vol. 13(03), pages 255-278, June.
  11. Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, vol. 65(4), pages 663-674, May.
  12. Schilizzi, Steven & Latacz-Lohmann, Uwe, 2007. "Assessing the performance of conservation auctions: an experimental study," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10436, Australian Agricultural and Resource Economics Society.
  13. Beria Leimona & Brooke Kelsey Jack & Betha Lusiana & Rachman Pasha, 2010. "Designing a Procurement Auction for Reducing Sedimentation: A Field Experiment in Indonesia," EEPSEA Research Report rr2010042, Economy and Environment Program for Southeast Asia (EEPSEA), revised Apr 2010.
  14. John M. Antle & Jetse J. Stoorvogel, 2006. "Predicting the Supply of Ecosystem Services from Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1174-1180.
  15. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, 03.
  16. Ferraro, Paul J., 2008. "Asymmetric information and contract design for payments for environmental services," Ecological Economics, Elsevier, vol. 65(4), pages 810-821, May.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Smith, Helen F. & Sullivan, Caroline A., 2014. "Ecosystem services within agricultural landscapes—Farmers' perceptions," Ecological Economics, Elsevier, vol. 98(C), pages 72-80.
  2. B. Kelsey Jack, 2013. "Private Information and the Allocation of Land Use Subsidies in Malawi," American Economic Journal: Applied Economics, American Economic Association, vol. 5(3), pages 113-35, July.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:40:y:2012:i:6:p:1213-1223. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.