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Contract Design for Biodiversity Procurement

Author

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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.

Suggested Citation

  • Bardsley, Peter & Burfurd, Ingrid, 2009. "Contract Design for Biodiversity Procurement," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48047, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare09:48047
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    File URL: http://purl.umn.edu/48047
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    References listed on IDEAS

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    Cited by:

    1. Derissen, Sandra & Quaas, Martin F., 2013. "Combining performance-based and action-based payments to provide environmental goods under uncertainty," Ecological Economics, Elsevier, vol. 85(C), pages 77-84.

    More about this item

    Keywords

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

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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