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Contract Design for Biodiversity Procurement

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  • Peter Bardsley
  • Ingrid Burfurd

Abstract

Market based instruments are proving e¤ective in biodiversity procure- ment and in the management of regulatory schemes to preserve biodiversity. The design of these schemes brings together issues in auction design, con- tract theory, ecology, and monitoring. Using a mixed adverse selection, moral hazard procurement model, we show that optimal contract design may di¤er signi?cantly between procurement and regulatory policy environ- ments

Suggested Citation

  • Peter Bardsley & Ingrid Burfurd, 2008. "Contract Design for Biodiversity Procurement," Department of Economics - Working Papers Series 1031, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:1031
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    Cited by:

    1. Derissen, Sandra & Quaas, Martin F., 2013. "Combining performance-based and action-based payments to provide environmental goods under uncertainty," Ecological Economics, Elsevier, vol. 85(C), pages 77-84.

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    More about this item

    Keywords

    biodiversity; procurement; adverse selection; contract theory;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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