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Contract Design for Biodiversity Procurement

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  • Bardsley, Peter
  • Burfurd, Ingrid

Abstract

Market based instruments are proving increasingly effective in biodiversity procurement and in regulatory schemes to preserve biodiversity. The design of these policy instruments brings together issues in auction design, contract theory, biology, and monitoring technology. Using a mixed adverse selection, moral hazard model, we show that optimal contract design may differ significantly between procurement and regulatory policy environments.

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Bibliographic Info

Paper provided by Australian Agricultural and Resource Economics Society in its series 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia with number 48047.

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Date of creation: 2009
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Handle: RePEc:ags:aare09:48047

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Keywords: biodiversity; procurement; adverse selection; moral hazard; contract theory;

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