2012
DOI: 10.1111/j.1467-8489.2012.00602.x
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Conservation tenders: linking theory and experiments for policy assessment*

Abstract: Auction theory has mostly focussed on target-constrained auctions and is less well developed for budget-constrained tenders, which are the norm in environmental policy. This study assesses a theoretical model developed for budget-constrained tenders in its capacity to predict tendering performance under information deficiencies typical of field applications. If complemented by laboratory experiments, the model is able to make the correct policy recommendation when comparing the tender to an equivalent fixed-pr… Show more

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Cited by 22 publications
(13 citation statements)
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“…A similar approach is applied by the U.S. Conservation Reserve Program (Claassen et al, 2008). For an auction to be effective, competition between ES providers is required, implying the need for a sufficiently large number of potential ES providers (Ferraro, 2008;Schilizzi and Latacz-Lohmann, 2013). Auctions can be expensive and difficult to implement, especially when countries have limited institutional capacity and landholders have low levels of information and formal education (FAO, 2007).…”
Section: Targeting Es Provision Costsmentioning
confidence: 99%
“…A similar approach is applied by the U.S. Conservation Reserve Program (Claassen et al, 2008). For an auction to be effective, competition between ES providers is required, implying the need for a sufficiently large number of potential ES providers (Ferraro, 2008;Schilizzi and Latacz-Lohmann, 2013). Auctions can be expensive and difficult to implement, especially when countries have limited institutional capacity and landholders have low levels of information and formal education (FAO, 2007).…”
Section: Targeting Es Provision Costsmentioning
confidence: 99%
“…Each paper was assigned to the highest‐probability topic for that paper. For example, in Schilizzi and Latacz‐Lohmann (), ‘Environment’ was the single dominant topic with a probability of 99%. On the other hand, some papers had several topics with nontrivial probabilities.…”
Section: Resultsmentioning
confidence: 99%
“…Respondents generally believed that the cost-effectiveness associated with tender implementation increased with their scale. This highlights the presence of increasing returns to scale, whereby the costs of tender implementation are believed to decline as tenders are more widely used, due to improved administrative efficiency and 'learning by doing' by the agency (Schilizzi and Latacz-Lohmann 2012). As experience and familiarity builds within agencies, it is thought that transaction costs will greatly decrease, allowing their cost-effectiveness advantages over flat rate subsidy schemes to be fully realised (Windle and Rolfe 2008).…”
Section: Resultsmentioning
confidence: 99%