EconPapers    
Economics at your fingertips  
 

Spatial Coordination and Joint Bidding in Conservation Auctions

Simanti Banerjee, Timothy Cason, Frans de Vries and Nick Hanley

Journal of the Association of Environmental and Resource Economists, 2021, vol. 8, issue 5, 1013 - 1049

Abstract: Spatial coordination of land use change is pivotal in agri-environmental policy to improve the delivery of environmental goods. This paper implements a laboratory experiment to study spatial coordination in a conservation auction. In addition to letting individual producers bid competitively against each other to supply environmental goods, we ask whether opportunities for joint bidding can enhance spatial coordination in the auction cost-effectively. Auction performance depends on the nature of incentives for individual bids; in particular, whether an agglomeration bonus is offered for individual bids. With an individual bonus in place, joint bidding gives no improvement in either environmental benefits procured or cost-effectiveness. Absent an individual bonus, joint bidding improves environmental performance but can decrease cost-effectiveness. Further, across both individual and joint bidding treatments, the average environmental benefits, degree of spatial coordination, and cost-effectiveness are greater, and amount of seller markups lower, with multiple-round bidding compared to single-round bidding.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://dx.doi.org/10.1086/714601 (application/pdf)
http://dx.doi.org/10.1086/714601 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: Spatial Coordination and Joint Bidding in Conservation Auctions (2021) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jaerec:doi:10.1086/714601

Access Statistics for this article

More articles in Journal of the Association of Environmental and Resource Economists from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

 
Page updated 2025-03-31
Handle: RePEc:ucp:jaerec:doi:10.1086/714601