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An auction scheme for land use change in Sichuan Province, China

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  • Xuehong Wang
  • Jeff Bennett
  • Jintao Xu
  • Haipeng Zhang

Abstract

This paper presents the application of an auction scheme for the allocation of funds for environmentally improving land use change (LUC) amongst farm households in Sichuan Province, China. Competing bids were ranked using their benefit to cost ratios. Results show that the auction approach can be both practically feasible and efficient in the Chinese context. The auction approach was 15% more cost-effective than the status quo fixed payment afforestation programme. The auction approach was also more closely targeted to achieve environmental improvements. Potential improvements to the auction process would be achieved through increased heterogeneity across bids and lower transaction costs from taking bids from aggregations of farmers.

Suggested Citation

  • Xuehong Wang & Jeff Bennett & Jintao Xu & Haipeng Zhang, 2011. "An auction scheme for land use change in Sichuan Province, China," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 55(10), pages 1269-1288, November.
    • Handle: RePEc:taf:jenpmg:v:55:y:2011:i:10:p:1269-1288
    DOI: 10.1080/09640568.2011.644401
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    References listed on IDEAS

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    1. Brett Bryan & Jeffery Connor et al, 2005., 2005. "Catchment Care - Developing an Auction Process for Biodiversity and Water Quality Gains. Volume 1 - Report," Natural Resource Management Economics 05_004, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.
    2. Jeff Bennett & Xuehong Wang & Lei Zhang (ed.), 2008. "Environmental Protection in China," Books, Edward Elgar Publishing, number 12922.
    3. Xu, Jintao & Zhang, Haipeng & Bennett, Jeffrey W. & Wang, Xuehong & Eigenraam, Mark, 2011. "Ecological Afforestation in China: A Market-based Approach," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100735, Australian Agricultural and Resource Economics Society.
    4. Brett Bryan & Jeffery Connor et al, 2005., 2005. "Catchment Care - Developing an Auction Process for Biodiversity and Water Quality Gains. Volume 2 - Appendices," Natural Resource Management Economics 05_005, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.
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