The transferability and performance of payment-by-results biodiversity conservation procurement auctions: empirical evidence from northernmost Germany

Markus Groth ()
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Markus Groth: Institute of Economics, University of Lüneburg

No 119, Working Paper Series in Economics from University of Lüneburg, Institute of Economics

Abstract: Managed grasslands contribute in a number of ways to the biodiversity of European agricultural landscapes and provide a wide range of ecosystem services that are also of socio-economic value. Against the background of a rapid biodiversity loss in agricultural landscapes, increasing attention is being paid to farming practices that enhance ecosystem services. Therefore developing cost-effective conservation payment schemes is the main challenge facing present European agri-environmental policy. This paper deals with the transferability of a payment scheme that combines a payment-by-results approach with the use of discriminatory-price conservation procurement auctions in order to improve the cost-effectiveness of conservation schemes for grassland plant biodiversity. Hence the design, implementation and results of the adapted case-study payment scheme in the county Steinburg in the northernmost federal state of Germany (Schleswig-Holstein) will be focussed. Results concerning the ecological-effectiveness of the payment-by-results approach as well bid-prices and potential cost-effectiveness gains by the use of conservation procurement auctions point out that it was possible to transfer the payment scheme successfully to another region, whereby the adapted case-study even outperforms the original case-study.

Keywords: agri-environmental policy; discriminatory-price auction; ecological services; experimental economics; multi-unit auction; payment-by-results; plant biodiversity; rural development. (search for similar items in EconPapers)
JEL-codes: C93 D44 H41 Q24 Q28 Q57 R52 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2009-02
New Economics Papers: this item is included in nep-agr and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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