Comparing a best management practice scorecard with an auction metric to select proposals in a water quality tender

John Rolfe () and Jill Windle ()
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John Rolfe: Faculty of Business and Informatics at Central Queensland University, Australia
Jill Windle: Faculty of Business and Informatics at Central Queensland University, Australia

Environmental Economics Research Hub Research Reports from Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University

Abstract: The focus of this paper is to compare different evaluation frameworks for selecting landholder proposals to improve water quality. The case study is a water quality tender performed in the Burdekin region in Northern Australia in 2007/2008 where bids could be assessed using an inputs-based best management practice scorecard or an outputs-based auction metric. The scorecard approach and other variants of multi-criteria analysis are commonly applied in grant schemes, where landholder proposals are rated by a range of inputs-based criteria. Output-based approaches are typically applied in water quality and conservation tenders, where an environmental benefits index is constructed to summarise the cost-effectiveness of each proposal. The case study evaluation reported in this paper demonstrates that multi-criteria analysis type assessments are flawed, and that the efficiency of public funding can be more than doubled by using auction metrics to assess proposals for landholders to improve water quality.

Keywords: water quality tender; auction metric, best management practice, input-based; output-based; Great Barrier Reef (search for similar items in EconPapers)
Date: 2009-12
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Persistent link: https://EconPapers.repec.org/RePEc:een:eenhrr:0943

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