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Quantifying The Benefits Of Conservation Auctions: Evidence From An Economic Experiment

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  • Latacz-Lohmann, Uwe
  • Schilizzi, Steven
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    Abstract

    Building on available theory, this work uses controlled laboratory experiments to investigate the budgetary and the economic performance of competitive tenders for allocating conservation contracts to landholders. Experiments have been replicated in two different countries to check for robustness of results. We find that auctions outperform the more traditional fixed-price schemes only in the one-shot setting. With repetition, the auctions quickly lose their edge. Our results suggest that previous estimates of conservation auction performance are too optimistic.

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    File URL: http://purl.umn.edu/7616
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    Bibliographic Info

    Paper provided by German Association of Agricultural Economists (GEWISOLA) in its series 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 with number 7616.

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    Date of creation: 2007
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    Handle: RePEc:ags:gewi07:7616

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    Related research

    Keywords: Conservation auctions; agri-environmental policy; experimental economics.; Environmental Economics and Policy;

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    1. Uwe Latacz-Lohmann & Carel Van der Hamsvoort, 1997. "Auctioning Conservation Contracts: A Theoretical Analysis and an Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 407-418.
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    Cited by:
    1. Glebe, Thilo W., 2011. "Tendering conservation contracts: Should information on environmental benefits be disclosed or concealed?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114625, European Association of Agricultural Economists.

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