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A note on the performance measure of conservation auctions AgEcon
Latacz-Lohmann, Uwe; Schilizzi, Steven.
We argue that previous assessments of discriminatory-price conservation auctions may have systematically overestimated their performance relative to uniform-payment schemes due to an inappropriate counterfactual comparison. We demonstrate that the cost curve (and not the bid curve) is the relevant supply curve when a uniform payment is offered and provide a theoretically rigorous counterfactual based on that insight. We estimate that the performance of BushTender may have been overrated by more than 50%.
Tipo: Working or Discussion Paper Palavras-chave: Auctions; Procurement; Tenders; Conservation; Economic experiments; Model validation; Plus: assessment method; Agricultural policy; Environmental policy; Market-based instruments; Environmental Economics and Policy; Research Methods/ Statistical Methods; C91; C92; D44; Q24; Q28.
Ano: 2011 URL: http://purl.umn.edu/100885
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Agricultural Trade Liberalisation and Strategic Environmental Policy AgEcon
Glebe, Thilo W.; Latacz-Lohmann, Uwe.
We use an extended partial equilibrium trade model to derive optimal environmental policy responses to tariff reduction requirements and assess the impact of such policies on the welfare of trading partners. We find that countries which attribute preferential political weights to farmers' welfare have an incentive to implement environmental policies that deviate from the Pigouvian solution - even if production is not de facto linked to environmental externalities. We clarify the conditions under which trading partners do not gain from unilateral trade liberalisation if trade concessions are accompanied by strategic environmental policy changes. We postulate a role for the WTO in overseeing the process of domestic policy formulation.
Tipo: Conference Paper or Presentation Palavras-chave: Trade liberalisation; Strategic environmental policy; Multifunctionality; Agri-environmental policy; WTO; Environmental Economics and Policy; D60; F11; F18; Q17.
Ano: 2005 URL: http://purl.umn.edu/24609
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AGRICULTURAL TRADE LIBERALIZATION AND STRATEGIC ENVIRONMENTAL POLICY: A FORMAL ANALYSIS AgEcon
Glebe, Thilo W.; Latacz-Lohmann, Uwe.
This paper develops an extended general equilibrium model of international trade in order to analyze the welfare effects of agricultural trade liberalization if a large country influences its terms of trade by means of environmental policy. We derive globally optimal first-best and second-best environmental and trade policy combinations as a benchmark for assessing the trade-distorting character of strategically motivated environmental policies and demonstrate that if second-best rather than first-best policies are chosen as a benchmark the conclusions may differ not only in magnitude but also in direction. We further demonstrate that if a Pigouvian instrument is transformed into a strategic environmental policy, following trade liberalization, the global...
Tipo: Conference Paper or Presentation Palavras-chave: International Relations/Trade.
Ano: 2004 URL: http://purl.umn.edu/20277
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Assessing the performance of conservation auctions: an experimental study AgEcon
Schilizzi, Steven; Latacz-Lohmann, Uwe.
Building on available theory, this work uses controlled laboratory experiments to investigate the budgetary and the economic performance of competitive tenders for allocating conservation contracts to landholders. Experiments have been replicated in two different countries to check for robustness of results. We find that auctions outperform the more traditional fixed-price programs only in the one-shot setting. With repetition, the auctions quickly lose their edge. The budget-constrained auction performs similarly to the target-constrained in the one-shot setting but appears more robust to repetition. Our results suggest that previous estimates of conservation auction performance are too optimistic, and we propose a method for improving such estimates.
Tipo: Conference Paper or Presentation Palavras-chave: Resource /Energy Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/10436
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AUCTIONING OUTCOME-BASED CONSERVATION CONTRACTS AgEcon
Latacz-Lohmann, Uwe; Schilizzi, Steven; Breustedt, Gunnar.
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.
Tipo: Conference Paper or Presentation Palavras-chave: Conservation tenders; Auctions; Incentive contracts; Agricultural policy; Environmental policy; Market-based instruments; Experimental economics; Auktionen; Ausschreibungsverfahren; Agrar-Umweltverträge; Agrar-Umweltpolitik; Anreizverträge; Experimentelle Ökonomie; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Demand and Price Analysis; Political Economy.
Ano: 2011 URL: http://purl.umn.edu/114523
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Beurteilung der technischen Effizienz der Agrarsektoren der EU-Beitrittsländer anhand parametrischer und nichtparametrischer Analyseverfahren AgEcon
Francksen, Tammo; Latacz-Lohmann, Uwe.
This paper employs Data Envelopment Analysis and Stochastic Frontier Analysis to examine the technical efficiency of the agricultural sectors of the Central and Eastern European accession Countries (CEECs) during the period 1998-2001. The results indicate that the agricultural sectors of many accession countries are both technically inefficient and scale-inefficient. The analysis of changes in total factor productivity suggests slow rates of adoption of technical progress, declining technical efficiency of agricultural enterprises and, as a result, less efficient use of existing technologies and resources during the considered time period.
Tipo: Journal Article Palavras-chave: Mittel- und osteuropäische Länder; Agrarsektoren; Technische Effizienz; Skaleneffizienz; Data Envelopment Analysis; Stochastische Frontier Analyse; Produktivitätswachstum; Productivity Analysis.
Ano: 2006 URL: http://purl.umn.edu/97317
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Does tendering conservation contracts with performance payments generate additional benefits? AgEcon
Schilizzi, Steven; Breustedt, Gunnar; Latacz-Lohmann, Uwe.
Policy makers aiming to get private landholders to supply non-marketed environmental services may need to provide efficient economic incentives. Two ideas have been explored to achieve this: linking contract payments to environmental outcomes and submitting the contracts to competitive tender. This paper investigates whether there are any gains to be had by combining the potential benefits of both approaches. Landholders’ risk aversion to only partially controlled outcomes may offset incentive effects if the fall in participation outweighs any increases in individual effort. Controlled lab experiments were designed on the basis of a theoretical model and were run in two countries, with varying rates of payments linked to environmental outcomes. Results...
Tipo: Working or Discussion Paper Palavras-chave: Conservation tenders; Auctions; Incentive contracts; Agricultural policy; Environmental policy; Market-based instruments; Experimental economics; Environmental Economics and Policy; Land Economics/Use; C92; D44; D82; D86; H57; Q24; Q28.
Ano: 2011 URL: http://purl.umn.edu/100883
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EIN OKONOMISCHES AUKTIONSEXPERIMENT ZUR AUSWAHL DER TEILNEHMER AN UMWELTSCHUTZPROGRAMMEN (German) AgEcon
Breustedt, Gunnar; Latacz-Lohmann, Uwe; Schilizzi, Steven.
Der vorliegende Artikel untersucht die Effizienz unterschiedlicher Ausgestaltungen von Auktionen zur Auswahl von Landwirten an Umweltprogrammen mittels eines ökonomischen Experimentes. Es wird eine Preisauktion, bei der die Leistung des Landwirts fixiert ist und er ein monetäres Mindestgebot für ein Teilnahmeentgelt abgeben soll, mit zwei unterschiedlichen Mengenauktionen verglichen, bei denen die Entgeltzahlung für den Landwirt fixiert ist und er aus unterschiedlichen Maßnahmen mit unterschiedlicher Leistung ein Angebotsbündel zusammenstellen soll. In der ersten Auktionsrunde ist die Leistung (=Stickstoffreduktion) je Euro Teilnahmeentgelt bei der Preisauktion signifikant höher als für die Mengenauktionen. Allerdings sind die Lerneffekte zwischen den...
Tipo: Conference Paper or Presentation Palavras-chave: Auktion; Ökonomisches Experiment; Umweltprogramm.
Ano: 2007 URL: http://purl.umn.edu/7607
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Eine empirische Untersuchung zum Wachstum von Milchviehbetrieben mittels der Ereignisanalyse AgEcon
Francksen, Tammo; Hagemann, Martin; Latacz-Lohmann, Uwe.
This paper investigates determinants of growth of milk production in German dairy farms. Event history analysis is applied to estimate the likelihood of a farm’s moving from a nongrowing episode into a growing episode and to assess the impact of various covariates on that likelihood. The analysis is based upon a balanced panel of annual farm accounts from 616 specialised dairy farms from Germany, covering the financial years 1995/96 to 2008/09. Im vorliegenden Beitrag wird innerbetriebliches Wachstums von deutschen Milchviehbetrieben mittels der Ereignisanalyse untersucht. Dabei wird die Wahrscheinlichkeit des Austritts aus einer Nicht-Wachstumsepisode bzw. des Eintritts in eine Wachstumsepisode eines Bebetriebes geschätzt. Darüber hinaus werden...
Tipo: Conference Paper or Presentation Palavras-chave: Event history analysis; Dairy farms; Internal growth; Determinants of growth; Ereignisanalyse; Milchviehbetriebe; Innerbetriebliches Wachstum; Einflussfaktoren auf Wachstum; Agribusiness.
Ano: 2011 URL: http://purl.umn.edu/114494
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Empirische Untersuchungen zum optimalen Spezialisierungsgrad ökologisch wirtschaftender Marktfruchtbetriebe AgEcon
Francksen, Tammo; Gubi, Gunther; Latacz-Lohmann, Uwe.
This paper employs the concept of technology efficiency to analyse the optimal degree of specialisation of organic arable farms. Based on bookkeeping data from 461 organic farms, three technology specific frontiers (each representing a different degree of specialisation)and an all-encompassing metafrontier are estimated using a combination of Data Envelopment Analysis and Window Analysis. The results indicate that a significant proportion of sample farms have not chosen their optimal degree of specialisation. We quantify the potential productivity gain from switching to the optimal specialisation class. This is highest for moderately specialised farms switching to higher degrees of specialisation. We demonstrate that there are significant differences in...
Tipo: Journal Article Palavras-chave: Organic arable farming; Business strategies; Optimal degree of specialisation; Technology efficiency; Data Envelopment Analysis; Window Analysis; Farm Management; Production Economics; Environmental Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/96729
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ESTIMATING NON-CONCAVE METAFRONTIERS USING DATA ENVELOPE ANALYSIS AgEcon
Breustedt, Gunnar; Francksen, Tammo; Latacz-Lohmann, Uwe.
In this article we propose non-concave metafrontiers for estimating the inefficiency among production functions which do not necessarily belong to the same technology. In this case, estimating a joint production by literature approaches might be inappropriate. We call this inefficiency technological inefficiency and suggest Data Envelopment Analysis to construct a metafrontier production function which consists only of parts of different (group) frontier production functions. Thus, in contrast to the common literature our metafrontier does not need any assumptions additional to the group production functions. We illustrate our approach by means of a large sample of differently diversified crop farms. Results show that the literature approach overestimates...
Tipo: Conference Paper or Presentation Palavras-chave: Efficiency analysis; Metafrontier production function; Data Envelopment Analysis; Production Economics.
Ano: 2007 URL: http://purl.umn.edu/7600
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European agri-environmental policy for the 21st century AgEcon
Latacz-Lohmann, Uwe; Hodge, Ian D..
The present paper reviews the development of agri-environmental policy in Europe and assesses its prospects. While it does so from a predominantly UK perspective, there are many common features of the experience and policy choices across the majority of Member States. The first generation of agri-environmental measures applied command-and-control regulation for the prevention of pollution. Second-generation measures pay farmers for providing environmental public goods. The emphasis on ‘amenity’ derived from the maintenance of agricultural production systems contrasts with policy approaches in Australia and the USA. Well-designed incentive schemes constitute ‘quasi-markets’ for public goods, correcting for a pre-existing market failure. Problems in the...
Tipo: Journal Article Palavras-chave: Agricultural and Food Policy; Environmental Economics and Policy.
Ano: 2003 URL: http://purl.umn.edu/116179
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Evaluating conservation auctions with limited information: the policy maker’s predicament AgEcon
Schilizzi, Steven; Latacz-Lohmann, Uwe.
Buying environmental services from private landholders using tendering mechanisms are usually subject to a budget constraint. Auction theory has mostly focused on target-constrained auctions and is less well developed for this type of auction. This paper examines a theoretical model specifically developed for budget-constrained tenders and assesses its capacity to predict tendering performance under information limitations typical of those found in field applications. But this assessment cannot be done without complementing the model with controlled laboratory experiments. Subject to their external validity, we find that the model is able to make the correct policy recommendation when comparing the tender to an equivalent fixed price scheme, even when the...
Tipo: Working or Discussion Paper Palavras-chave: Auctions; Procurement; Tenders; Conservation; Economic experiments; Model validation; Environmental Economics and Policy; Land Economics/Use; C91; C92; D44; Q24; Q28.
Ano: 2011 URL: http://purl.umn.edu/100884
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Evaluierung von Agrarumweltprogrammen auf Grundlage der Umwelteffizienz landwirtschaftlicher Betriebe AgEcon
Francksen, Tammo; Latacz-Lohmann, Uwe.
This paper sets out to develop an economic framework for ex post evaluations of agri-environmental schemes. We begin by developing a non-parametric model for estimating farm-level environmental efficiency scores. We then use this efficiency framework to devise a set of economic criteria for evaluating agri-environmental schemes. One key criterion is whether an environmental scheme has given rise to an increase in environmental efficiency scores across participating farms, relative to a counterfactual group of non participants. We finally demonstrate the potential usefulness of the framework by applying it to a fictitious multiple-objective conservation programme. The dataset is made up of 100 fictitious farms, half of which participate in the environmental...
Tipo: Journal Article Palavras-chave: Environmental efficiency; Evaluation; Agri-environmental policy; Performance measurement; Agricultural and Food Policy; Environmental Economics and Policy; Productivity Analysis.
Ano: 2008 URL: http://purl.umn.edu/97596
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Forecasting the Adoption of GM Oilseed Rape: Evidence from a Discrete Choice Experiment AgEcon
Breustedt, Gunnar; Muller-Scheessel, Jorg; Latacz-Lohmann, Uwe.
This paper explores farmers’ willingness to adopt genetically modified oilseed rape prior to its commercial release and estimates the ‘demand’ for the new technology. The analysis is based upon choice experiments with 202 German arable farmers. A multinomial probit estimation revealed that GM attributes such as gross margin, expected liability from cross pollination, or flexibility in returning to conventional oilseed rape significantly affect the likelihood of adoption. Neighbouring farmers’ attitudes towards GM cropping and a number of farmer and farm characteristics were also found to be significant determinants of prospective adoption. Demand simulations suggest that adoption rates are very sensitive to the profit difference between GM and non-GM rape...
Tipo: Conference Paper or Presentation Palavras-chave: Adoption forecast; Choice experiment; Genetically modified oilseed rape; Multinomial probit; Technology adoption; C42; C81; Q12; Q16.
Ano: 2008 URL: http://purl.umn.edu/36771
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ORGANIC OR CONVENTIONAL? OPTIMAL DAIRY FARMING TECHNOLOGY UNDER THE EU MILK QUOTA SYSTEM AND ORGANIC SUBSIDIES AgEcon
Breustedt, Gunnar; Latacz-Lohmann, Uwe; Tiedemann, Torben.
A1_4
Tipo: Conference Paper or Presentation Palavras-chave: Organic farming; EU milk quota; Data Envelopment Analysis; Subsidy payments; Agricultural and Food Policy.
Ano: 2010 URL: http://purl.umn.edu/93934
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Predicting the performance of conservation tenders when information on bidders's costs is limited AgEcon
Schilizzi, Steven; Latacz-Lohmann, Uwe.
Buying environmental services from private landholders using tendering mechanisms are usually subject to a budget constraint. Auction theory has mostly focused on target-constrained auctions and is not well developed for this type of auction. This paper examines the predictive capacity of a simple model developed for budget-constrained tenders, already used to design new conservation programs, by submitting it to controlled lab experiments. We study the capacity of the model to predict both experimental bids and the performance of the auction institution, based on the kind of limited information typically available to a conservation agency. We conclude there exists an optimal level of information on bidders’ costs, neither too large nor to small, making...
Tipo: Conference Paper or Presentation Palavras-chave: Auctions; Procurement; Tenders; Conservation; Learning; Economic experiments.
Ano: 2009 URL: http://purl.umn.edu/48171
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QUANTIFYING THE BENEFITS OF CONSERVATION AUCTIONS: EVIDENCE FROM AN ECONOMIC EXPERIMENT AgEcon
Latacz-Lohmann, Uwe; Schilizzi, Steven.
Building on available theory, this work uses controlled laboratory experiments to investigate the budgetary and the economic performance of competitive tenders for allocating conservation contracts to landholders. Experiments have been replicated in two different countries to check for robustness of results. We find that auctions outperform the more traditional fixed-price schemes only in the one-shot setting. With repetition, the auctions quickly lose their edge. Our results suggest that previous estimates of conservation auction performance are too optimistic.
Tipo: Conference Paper or Presentation Palavras-chave: Conservation auctions; Agri-environmental policy; Experimental economics.; Environmental Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/7616
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Should we combine incentive payments and tendering for efficiently purchasing conservation services from landholders? AgEcon
Schilizzi, Steven; Breustedt, Gunnar; Latacz-Lohmann, Uwe.
Policy makers aiming to get private landholders to provide non-marketed environmental services need to provide efficient economic incentives. Two ideas have been explored to achieve this: 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. Landholder risk aversion may offset incentive effects if the fall in participation outweighs any increases in individual effort. Using controlled lab experiments in two countries and across four subject groups, and systematically varying the rate at which payments are linked to uncertain outcomes, this paper clarifies the conditions under which incentives overcome...
Tipo: Conference Paper or Presentation Palavras-chave: Conservation tenders; Auctions; Incentive contracts; Agricultural policy; Environmental policy; Market-based instruments; Experimental economics; Agricultural and Food Policy; Environmental Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/59159
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What is my optimal technology? A metafrontier approach using Data Envelopment Analysis for the choice between conventional and organic farming AgEcon
Breustedt, Gunnar; Tiedemann, Torben; Latacz-Lohmann, Uwe.
We analyse the relative competitiveness between organic and conventional farming under different policy scenarios using a DEA-based non-convex metafrontier model. This model allows us to identify a farm’s ex post optimal technology based on input-output observations. Results for Bavarian dairy farms indicate that more than two-thirds of the farms in both technologies – organic and conventional – have chosen their optimal farming system. The remaining farmers could increase their productivity by roughly 5% on average by switching to the other technology. Assuming away the existence of the EU milk quota, reduces the number of sample farms for which organic farming is the optimal technology by more than three fourth. This finding suggests that ceteris paribus...
Tipo: Conference Paper or Presentation Palavras-chave: Organic farming; EU milk quota; Data Envelopment Analysis; Metafrontier analysis; Agricultural and Food Policy; Farm Management.
Ano: 2009 URL: http://purl.umn.edu/51754
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