IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Buyouts and Agglomeration Bonuses in Wildlife Corridor Auctions

Listed author(s):
  • Justin Dijk

    ()

    (VU Amsterdam and PBL Netherlands Environmental Assessment Agency, The Netherlands)

  • Erik Ansink

    ()

    (VU Amsterdam, The Netherlands)

  • Daan van Soest

    (Tilburg University, The Netherlands)

We present a general model of bidding behavior in wildlife corridor auctions. Given (i) some spatial configuration of landowners in a landscape, (ii) the landowners’ opportunity costs, and (iii) the value of establishing the corridor, our model predicts individual landowners’ bids, overall participation rates in the auction, as well as the expected net benefits to the conservation agency. We find that market efficiency of the auction increases in the number of potential corridors. We use simulations to compare a benchmark auction with two policy scenarios in a hypothetical landscape. In one scenario, members of a winning corridor receive an agglomeration bonus. In the other scenario, we buy out a pivotal landowner (one that is part of many potential corridors) prior to the auction. Given equal budgets for the agglomeration bonus and the buyout policy, an agglomeration bonus is less efficient than a buyout for conservation agencies facing low budgets, and vice versa. A risk-averse conservation agency is however always better off using a buyout policy.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://papers.tinbergen.nl/17036.pdf
Download Restriction: no

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 17-036/VIII.

as
in new window

Length:
Date of creation: 05 Apr 2017
Handle: RePEc:tin:wpaper:20170036
Contact details of provider: Postal:
Gustav Mahlerplein 117, 1082 MS Amsterdam

Phone: +31 (0)20 598 4580
Web page: http://www.tinbergen.nl/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as
in new window


  1. Cramton, Peter & Schwartz, Jesse A, 2000. "Collusive Bidding: Lessons from the FCC Spectrum Auctions," Journal of Regulatory Economics, Springer, vol. 17(3), pages 229-252, May.
  2. Md. Sayed Iftekhar & John G. Tisdell, 2016. "An Agent Based Analysis of Combinatorial Bidding for Spatially Targeted Multi-Objective Environmental Programs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 537-558, August.
  3. Iftekhar, M.S. & Tisdell, J.G., 2014. "Wildlife corridor market design: An experimental analysis of the impact of project selection criteria and bidding flexibility," Ecological Economics, Elsevier, vol. 104(C), pages 50-60.
  4. Stoneham, Gary & Chaudhri, Vivek & Ha, Arthur & Strappazzon, Loris, 2003. "Auctions for conservation contracts: an empirical examination of Victoria’s BushTender trial," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), December.
  5. Jacob R. Fooks & Nathaniel Higgins & Kent D. Messer & Joshua M. Duke & Daniel Hellerstein & Lori Lynch, 2016. "Conserving Spatially Explicit Benefits in Ecosystem Service Markets: Experimental Tests of Network Bonuses and Spatial Targeting," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(2), pages 468-488.
  6. Jackson, Matthew O., 2005. "Allocation rules for network games," Games and Economic Behavior, Elsevier, vol. 51(1), pages 128-154, April.
  7. Cason Timothy N., 1993. "Seller Incentive Properties of EPA's Emission Trading Auction," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 177-195, September.
  8. Bamière, Laure & David, Maia & Vermont, Bruno, 2013. "Agri-environmental policies for biodiversity when the spatial pattern of the reserve matters," Ecological Economics, Elsevier, vol. 85(C), pages 97-104.
  9. Parkhurst, Gregory M. & Shogren, Jason F. & Bastian, Chris & Kivi, Paul & Donner, Jennifer & Smith, Rodney B. W., 2002. "Agglomeration bonus: an incentive mechanism to reunite fragmented habitat for biodiversity conservation," Ecological Economics, Elsevier, vol. 41(2), pages 305-328, May.
  10. Conrad, Jon M. & Gomes, Carla P. & van Hoeve, Willem-Jan & Sabharwal, Ashish & Suter, Jordan F., 2012. "Wildlife corridors as a connected subgraph problem," Journal of Environmental Economics and Management, Elsevier, vol. 63(1), pages 1-18.
  11. Gregory M. Parkhurst & Jason F. Shogren, 2008. "Smart Subsidies for Conservation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1192-1200.
  12. Fabio Bartolini & Gianluca Brunori & Laura Fastelli & Massimo Rovai, 2013. "Understanding the participation in agri-environmental schemes: evidence from Tuscany Region," ERSA conference papers ersa13p1084, European Regional Science Association.
  13. Williams, Kristen J. & Reeson, Andrew F. & Drielsma, Michael J. & Love, Jamie, 2012. "Optimised whole-landscape ecological metrics for effective delivery of connectivity-focused conservation incentive payments," Ecological Economics, Elsevier, vol. 81(C), pages 48-59.
  14. Laura Brown & Elizabeth Troutt & Cynthia Edwards & Brian Gray & Wanjing Hu, 2011. "A Uniform Price Auction for Conservation Easements in the Canadian Prairies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(1), pages 49-60, September.
  15. Parkhurst, Gregory M. & Shogren, Jason F., 2007. "Spatial incentives to coordinate contiguous habitat," Ecological Economics, Elsevier, vol. 64(2), pages 344-355, December.
  16. Frank Wätzold & Martin Drechsler, 2005. "Spatially Uniform versus Spatially Heterogeneous Compensation Payments for Biodiversity-Enhancing Land-Use Measures," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(1), pages 73-93, 05.
  17. Gary Stoneham & Vivek Chaudhri & Arthur Ha & Loris Strappazzon, 2003. "Auctions for conservation contracts: an empirical examination of Victoria's BushTender trial," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 477-500, December.
  18. Drechsler, Martin & Wätzold, Frank & Johst, Karin & Shogren, Jason F., 2010. "An agglomeration payment for cost-effective biodiversity conservation in spatially structured landscapes," Resource and Energy Economics, Elsevier, vol. 32(2), pages 261-275, April.
  19. Geret S. DePiper & Nathaniel Higgins & Douglas W. Lipton & Andrew Stocking, 2013. "Auction Design, Incentives, and Buying Back Maryland and Virginia Crab Licenses," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 61(2), pages 353-370, 06.
  20. Windle, Jill & Rolfe, John & Whitten, Stuart M. & McCosker, Juliana, 2005. "A competitive bidding process with landholder cooperation for landscape linkage," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 139301, Australian Agricultural and Resource Economics Society.
  21. Macho-Stadler, Ines & Perez-Castrillo, David & Wettstein, David, 2007. "Sharing the surplus: An extension of the Shapley value for environments with externalities," Journal of Economic Theory, Elsevier, vol. 135(1), pages 339-356, July.
  22. Uwe Latacz-Lohmann & Carel P. C. M. Hamsvoort, 1998. "Auctions as a Means of Creating a Market for Public Goods from Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 334-345.
  23. Johnson, Eric J. & Camerer, Colin & Sen, Sankar & Rymon, Talia, 2002. "Detecting Failures of Backward Induction: Monitoring Information Search in Sequential Bargaining," Journal of Economic Theory, Elsevier, vol. 104(1), pages 16-47, May.
  24. Gregory M. Parkhurst & Jason F. Shogren & Thomas Crocker, 2016. "Tradable Set-Aside Requirements (TSARs): Conserving Spatially Dependent Environmental Amenities," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 719-744, April.
  25. Krawczyk, Michał & Bartczak, Anna & Hanley, Nick & Stenger, Anne, 2016. "Buying spatially-coordinated ecosystem services: An experiment on the role of auction format and communication," Ecological Economics, Elsevier, vol. 124(C), pages 36-48.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:tin:wpaper:20170036. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tinbergen Office +31 (0)10-4088900)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.