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Green auctions versus uniform agri-environmental payments under heterogeneous conditions AgEcon
Cattaneo, Andrea; Lankoski, Jussi E.; Ollikainen, Markku.
This paper examines how jointness of environmental benefits and environmental heterogeneity affect auction designs and the potential benefits of green auctions over conventional flat-rate agri-environmental policies. A sealed bid green auction is used to promote an agri-environmental program with two environmental targets, nutrient runoff reduction and biodiversity provision. A score index comprising of environmental performance and the monetary size of bid is developed to rank the farmers’ applications. The green auction is analyzed analytically and then empirically by using Finnish data. An auction that screens according to the environmental score and another one with an additional cost-saving component are simulated in the context of two different...
Tipo: Conference Paper or Presentation Palavras-chave: Bid; Joint environmental benefits; Score index value; Environmental Economics and Policy; Land Economics/Use; Public Economics; Resource /Energy Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/51678
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