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Private ex-ante transaction costs for repeated biodiversity conservation auctions: a case study

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  • Markus Groth

    (Centre for Sustainability Management, Leuphana University of Lüneburg)

Abstract

The European Union’s Council Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development has introduced promising changes in rewarding farmers by the implementation of conservation auctions and granting farmers’ transaction costs. The paper therefore deals with the evaluation of private transaction costs within a case study using repeated auctions to reward plant biodiversity. Based on a review of the current literature the paper develops a specific definition of transaction costs as well as a methodology to measure and calculate the farmers’ private transaction costs. The case study enfolds two field experiment auctions and two corresponding surveys. The transaction costs are measured by the use of written questionnaires and will be discussed both as a first reference value of farmers’ transaction costs as well as compared to the individual payments within the case study auctions in order to investigate the real-life performance of this specific application of repeated conservation auctions in biodiversity protection efforts.

Suggested Citation

  • Markus Groth, 2008. "Private ex-ante transaction costs for repeated biodiversity conservation auctions: a case study," Working Paper Series in Economics 84, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:84
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    References listed on IDEAS

    as
    1. Baumgärtner, Stefan & Quaas, Martin, 2005. "The private and public insurance value of conservative biodiversity management," UFZ Discussion Papers 27/2005, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    2. Joachim Wagner & Lena Koller & Claus Schnabel, 2008. "Sind mittelständische Betriebe der Jobmotor der deutschen Wirtschaft?," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 88(2), pages 130-135, February.
    3. Joachim Wagner, 2007. "Exports and Productivity in Germany," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 53(4), pages 353-373.
    4. repec:bpj:pewipo:v:8:y:2007:i:3:p:242-255:n:3 is not listed on IDEAS
    5. Wagner, Joachim, 2007. "Why More West than East German Firms Export," IZA Discussion Papers 2656, Institute of Labor Economics (IZA).
    6. Lena Koller & Claus Schnabel & Joachim Wagner, 2007. "Schwellenwerte im Arbeitsrecht: Höhere Transparenz und Effizienz durch Vereinheitlichung," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(3), pages 242-255, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Olga N. Balaeva & Andrei A. Yakovlev & Yuliya D. Rodionova & Daniil M. Esaulov, 2018. "Public Procurement Transaction Costs: A Country-Level Assessment Based On Microdata," HSE Working papers WP BRP 20/PSP/2018, National Research University Higher School of Economics.
    2. Markus Groth, 2009. "The transferability and performance of payment-by-results biodiversity conservation procurement auctions: empirical evidence from northernmost Germany," Working Paper Series in Economics 119, University of Lüneburg, Institute of Economics.
    3. Anne van Aaken & Janis Antonovics & Peter Kareiva & Emma Fuller, 2016. "Beyond Resilience: How to Better Prepare for the Profound Disruption of the Anthropocene," Global Policy, London School of Economics and Political Science, vol. 7, pages 107-118, May.
    4. Jacob R. Fooks & Kent D. Messer & Joshua M. Duke, 2015. "Dynamic Entry, Reverse Auctions, and the Purchase of Environmental Services," Land Economics, University of Wisconsin Press, vol. 91(1), pages 57-75.
    5. DeBoe, Gwendolen & Stephenson, Kurt, 2016. "Transactions costs of expanding nutrient trading to agricultural working lands: A Virginia case study," Ecological Economics, Elsevier, vol. 130(C), pages 176-185.

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    More about this item

    Keywords

    agri-environmental policy; biodiversity conservation auctions; transaction costs; ecological services; plant biodiversity; experimental economics; EAFRD-Regulation;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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