Green auctions with joint environmental benefits

Show simple item record Cattaneo, Andrea en Lankoski, Jussi en Ollikainen, Markku en 2007-08-03T11:04:41Z en 2009-06-17T14:06:07Z 2007-08-03T11:04:41Z en 2009-06-17T14:06:07Z 2007 en
dc.identifier.issn 1459-9996 en
dc.description.abstract This paper examines how jointness of environmental benefits and environmental heterogeneity affect the potential benefits of green auctions over flat-rate agri-environmental policies. A sealed bid green auction with two environmental objectives, nutrient runoff reduction and biodiversity provision, is analyzed. The green auction is analyzed analytically and then empirically by using Finnish data. Auctions that screen farmers’ applications according to an environmental index (with and without a cost-saving component) are simulated in the context of two different conservation options. The first option assumes enlarged field edges are located in whichever edge of a parcel, providing only biodiversity benefits, whereas in the second option they are located on the waterfront so as to also reduce nitrogen runoff. Empirical results show that in both cases the green auction with the cost saving outperforms other policies. However, when environmental benefits are not jointly produced by a practice, farmer participation is much more sensitive to how objectives and cost-saving are weighted, leading to unwanted swings in participation. en
dc.language.iso en en
dc.publisher Helsingin yliopisto, taloustieteen laitos en
dc.relation.ispartofseries Discussion Papers en
dc.relation.ispartofseries 19 en
dc.subject green auction en
dc.subject environmental index en
dc.subject agri-environmental programs en
dc.subject multiple objectives en
dc.title Green auctions with joint environmental benefits en
dc.type Article en
dc.identifier.laitoskoodi 876 fi
dc.creator.corporateName Taloustieteen laitos fi
dc.creator.corporateName Department of Economics and Management en
dc.creator.corporateName Ekonomi, Institutionen för sv

Files in this item

Total number of downloads: Loading...

Files Size Format View
DP19.pdf 1.319Mb PDF View/Open

This item appears in the following Collection(s)

Show simple item record