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Understanding the potential adoption of agroforestry in Fiji using procurement auctions

Author

Listed:
  • Paulo Santos

    (Economics, Monash University.)

  • Benjamin Chipperfield

    (Economics, Monash University.)

  • Shipra Shah

    (Forestry, Fiji National University)

Abstract

REDD+ is a promising mechanism for financing carbon sequestration, but limited research exists on the contract designs that maximise this outcome. We estimate the supply of carbon under different agroforestry contracts using primary data collected in Fiji through procurement auctions, artefactual experiments, and household surveys. Our findings indicate that the densest and longest-duration contract offers the most cost-effective opportunities for carbon sequestration. We contrast auctions with contracts defined on the basis of important drivers of bidding decisions (identified using regression trees), under different assumptions of variables that can be used to administratively target beneficiaries. Our analysis shows that for relatively high values of carbon sequestration, auctions outperform such targeted payments, supporting their use for implementing REDD+ in Fiji.

Suggested Citation

  • Paulo Santos & Benjamin Chipperfield & Shipra Shah, 2025. "Understanding the potential adoption of agroforestry in Fiji using procurement auctions," Monash Economics Working Papers 2025-07, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2025-07
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    References listed on IDEAS

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    4. Lundberg, Liv & Persson, U. Martin & Alpizar, Francisco & Lindgren, Kristian, 2018. "Context Matters: Exploring the Cost-effectiveness of Fixed Payments and Procurement Auctions for PES," Ecological Economics, Elsevier, vol. 146(C), pages 347-358.
    5. Rabia Mazhar & Hossein Azadi & Steven Van Passel & Rando Värnik & Marcin Pietrzykowski & Rytis Skominas & Zou Wei & Bi Xuehao, 2023. "Does Contract Length Matter? The Impact of Various Contract-Farming Regimes on Land-Improvement Investment and the Efficiency of Contract Farmers in Pakistan," Agriculture, MDPI, vol. 13(9), pages 1-16, August.
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    More about this item

    Keywords

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    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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