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Auctioning Outcome-Based Conservation Contracts

Author

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  • Latacz-Lohmann, Uwe
  • Schilizzi, Steven
  • Breustedt, Gunnar

Abstract

This paper explores two ideas to enhance the performance of agri-environmental contracting schemes: linking contract payments to environmental outcomes and putting the contracts up for tender. This paper investigates whether there are any gains to be had by combining the benefits of both approaches. Controlled lab experiments were run in two countries, systematically varying the rate at which payments are linked to environmental outcomes. This paper clarifies the conditions under which the benefits from combining tenders with incentive payments outweigh the costs.

Suggested Citation

  • Latacz-Lohmann, Uwe & Schilizzi, Steven & Breustedt, Gunnar, 2011. "Auctioning Outcome-Based Conservation Contracts," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114523, German Association of Agricultural Economists (GEWISOLA).
    • Handle: RePEc:ags:gewi11:114523
    DOI: 10.22004/ag.econ.114523
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    References listed on IDEAS

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    2. Mußhoff, O. & Hirschauer, N., 2013. "Planspiele als experimentelle Methode der Politikfolgenabschätzung: Das Beispiel der Stickstoffextensivierung," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 48, March.
    3. Moser, S. & Mußhoff, O., 2015. "Reward, Punishment and Probabilities in Policy Measurements: An Extra Laboratory Experiment about Effectiveness and Efficiency of Incentives in Palm Oil Production," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 50, March.
    4. Moser, Stefan & Mußhoff, Oliver, 2014. "Reward, punishment and probabilities in policy measurements: An extra laboratory experiment about effectiveness and efficiency of incentives in palm oil production," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187432, German Association of Agricultural Economists (GEWISOLA).
    5. François J Dessart & Jesús Barreiro-Hurlé & René van Bavel, 2019. "Behavioural factors affecting the adoption of sustainable farming practices: a policy-oriented review," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(3), pages 417-471.

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    Keywords

    Agribusiness; Agricultural and Food Policy; Agricultural Finance; Demand and Price Analysis; Political Economy;
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