Designing frameworks to deliver unknown information to support market-based instrumentsMark Eigenraam, Loris Strappazzon, Nicola Lansdell, Craig Beverly and Gary Stoneham Agricultural Economics, 2007, vol. 37, issue s1, pages 261-269 Abstract: This article reports on an Australian auction to procure multiple environmental outcomes: "EcoTender". EcoTender uses a Catchment Modelling Framework (CMF) to estimate the impact landholder actions have on carbon, terrestrial biodiversity, aquatic function (water quality and quantity), and saline land area. This framework solves the problem of linking paddock-scale land use and management to catchment-scale environmental outcomes. This is the first time a market-based instrument has been fully integrated from desk to field with a biophysical model for the purchase of multiple environmental outcomes. A multiple outcome auction provides several new economic and scientific challenges. This article discusses the EcoTender approach to incorporating agency preferences, modeling the joint production of environmental outcomes and reporting environmental scores. Results indicate that linking EcoTender to the carbon market reduced the cost of procuring the environmental goods by 26%. Further, preliminary estimates show that the environmental gains from scoring the joint production of multiple outcomes are between 30% and 50% to the agency. Copyright 2007 International Association of Agricultural Economists. Downloads: (external link) Related works: Ordering information: This journal article can be ordered from Access Statistics for this article Agricultural Economics is edited by W.A. Masters and G.E. Shively More articles in Agricultural Economics from International Association of Agricultural Economists |
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