Environmental services auctions under regulatory threat

William B. Holmes

Land Use Policy, 2017, vol. 63, issue C, 584-591

Abstract: This paper examines how strategic responses of bidders and efficiency properties are impacted in auctions for the procurement of environmental services when a threat of regulation is levied. Laboratory experiments reveal characteristics of bidder behavior in different regulatory environments. Experimental results provide insight into efficiency and equity tradeoffs inherent in regulatory policy applications with respect to environmental services auctions. While it is possible to reduce the amount of public funds necessary to purchase a given level of environmental services, adverse selection costs and equity considerations may outstrip the benefits gained from threat implementation.

Keywords: Auction; Conservation services; Procurement auction; Regulatory threat; Conservation auction (search for similar items in EconPapers)
JEL-codes: D44 D82 K32 Q5 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:63:y:2017:i:c:p:584-591

DOI: 10.1016/j.landusepol.2015.06.004

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