A note on the performance measure of conservation auctions

Uwe Latacz-Lohmann and Steven Schilizzi

No 100885, Working Papers from University of Western Australia, School of Agricultural and Resource Economics

Abstract: 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%.

Keywords: Environmental Economics and Policy; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 10
Date: 2011-02-18
New Economics Papers: this item is included in nep-agr and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uwauwp:100885

DOI: 10.22004/ag.econ.100885

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