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Private ex-ante transaction costs for repeated biodiversity conservation auctions: a case study

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  • Markus Groth

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    (Centre for Sustainability Management, Leuphana University of Lüneburg)

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    Abstract

    The European Union’s Council Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development has introduced promising changes in rewarding farmers by the implementation of conservation auctions and granting farmers’ transaction costs. The paper therefore deals with the evaluation of private transaction costs within a case study using repeated auctions to reward plant biodiversity. Based on a review of the current literature the paper develops a specific definition of transaction costs as well as a methodology to measure and calculate the farmers’ private transaction costs. The case study enfolds two field experiment auctions and two corresponding surveys. The transaction costs are measured by the use of written questionnaires and will be discussed both as a first reference value of farmers’ transaction costs as well as compared to the individual payments within the case study auctions in order to investigate the real-life performance of this specific application of repeated conservation auctions in biodiversity protection efforts.

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    File URL: http://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ifvwl/WorkingPapers/wp_84_Upload.pdf
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    Bibliographic Info

    Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 84.

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    Length: 34 pages
    Date of creation: 05 May 2008
    Date of revision:
    Handle: RePEc:lue:wpaper:84

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    Web page: http://leuphana.de/institute/ivwl.html

    Related research

    Keywords: agri-environmental policy; biodiversity conservation auctions; transaction costs; ecological services; plant biodiversity; experimental economics; EAFRD-Regulation;

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    1. Wagner, Joachim & Koller, Lena & Schnabel, Claus, 2007. "Sind mittelständische Betriebe der Jobmotor der deutschen Wirtschaft?," Discussion Papers 54, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    2. Baumgärtner, Stefan & Quaas, Martin, 2005. "The private and public insurance value of conservative biodiversity management," UFZ Discussion Papers 27/2005, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
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