An empirical examination of repeated auctions for biodiversity conservation contracts

The European Union’s Council Regulation on support for rural development by the European Agricultural Fund for Rural Development has introduced auctioning as a new instrument for granting agri-environmental payments and awarding conservation contracts for the recent multi-annual budgetary plan. This paper therefore deals with the conception and results of two case study auctions for conservation contracts. Results of two field experiments show much differentiated bid prices in the model-region and budgetary cost-effectiveness gains of up to 21% in the first auction and up to 36% in the repeated auction. Besides these promising results, some critical aspects as well as lessons to be learned will also be discussed in this paper to improve the design and performance of upcoming conservation auctions.agri-environmental policy, discriminatory-price auction, multi-unit auction, ecological services, plant biodiversity, experimental economics

Auctions in an outcome-based payment scheme to reward ecological services in agriculture – Conception, implementation and results

This paper presents an outcome-based payment scheme to reward ecological services in agriculture. It was designed by a research group from the Georg-August-University of Goettingen. Starting in January 2004 the payment scheme is tested upon it’s implementation as an agri-environmental program in a model-region (administrative district Northeim in the south of Lower Saxony – Germany). The intention of the program is to overcome the disadvantages of existing and mostly action-orientated agri-environmental programs, especially those in the European Union. The design of the payment scheme is based on fundamental criteria of market economy such as supply and demand and it integrates auctions as an award procedure. Furthermore it is outcome-based and considers the interests of the local people and the relevant stakeholders and their demand for botanical diversity. The main research topic is to explore the use of auction in agri-environmental programs seen from an transaction cost economics point of view. Therefor the relevant farmers transaction costs will be measured. In the course of this research it is essential to analyse the practical relevance of transaction costs and to draw conclusions to their theoretical foundation. Results as well as of the first auction and two surveys of local farmers already show, that this payment scheme is not just an theoretical construct but that it is already practicable in the model-region. However further research is needed to make sure that at the end of the current case study this payment scheme is authorised from an ecological economics point of view and has a high potential to be a part of a sustainable future agri-environmental policy in Germany and the European Union.

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

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.agri-environmental policy, biodiversity conservation auctions, transaction costs, ecological services, plant biodiversity, experimental economics, EAFRD-Regulation

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

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.agri-environmental policy, discriminatory-price auction, ecological services, experimental economics, multi-unit auction, payment-by-results, plant biodiversity, rural development.

Towards an agri-environment index for biodiversity conservation payment schemes

The aim of the paper is to give suggestions about how an agri-environment index can be designed by taking into account specific ecological and economical factors that reflect benefits and costs of biodiversity conservation. Main findings are that the general structure of an agri-environment index is recommended to be a benefits-to-cost ratio, whereby the conservation benefits are accounted for by the following factors which evaluate i) certain criteria that value the ecological quality of a site and point out its significance for biodiversity conservation (Conservation Significance Factor), ii) a criterion that reflects the connectivity of the site which is an important factor for species migration (Connectivity Factor) and iii) criteria that estimate the potential biodiversity outcomes induced by specific management actions (Conservation Management Factor). The Cost Factor reflects the amount of money that the landholder demands as compensation payment for his conservation services. The paper points out that an agri-environment index is a promising approach to encourage and compensate farmers for biodiversity-friendly management actions. Thereby, an improvement of the effectiveness and efficiency of European conservation payment schemes is a decisive contribution to biodiversity conservation in agricultural landscapes.agri-environmental policy, biodiversity benefits index, biodiversity conservation, ecosystem services, environmental benefits index, rural development

where are we and where should we go from here?

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. However, there is still a serve shortage of knowledge and practical experiences concerning the use of conservation procurement auctions in Europe. The aim of the paper, therefore, is twofold. Firstly, the current state of using markets for biodiversity by means of payment-by-results biodiversity conservation procurement auctions will be discussed by reviewing two field experiments with farmers in two case- study areas in Germany. Secondly, further need for research will be discussed briefly. Keeping in mind the methodological difficulties of evaluating field experiments, this empirical work indicates a potential for budgetary cost advantages of auctioning compared to traditional fixed flat-rate payment schemes of up to 52 per cent. These findings along with the relatively high number of successful participants indicate that this specific approach will most probably be an improvement over current agri-environmental programmes in the EU. This is mainly because low-cost producers gain smaller information rents and conservation agencies will be able to close contracts with (some) high-cost farmers due to cost-effectiveness gains provided by low-cost landowners. Even though the case-studies have yielded promising results, some critical aspects as well as lessons to be learnt will be discussed to improve the design and performance of upcoming biodiversity conservation procurement auctions based on performance payments. Current need for research addressed in the paper takes deals with the design of a specific agri-environment index for plant biodiversity

Zur Relevanz von Bestandseffekten und der Fundamentalen Transformation in wiederholten Biodiversitätsschutz-Ausschreibungen

Das ökonomische Potential des Einsatzes von Ausschreibungen für Umweltleistungen konnte nunmehr auch in Europa aufgezeigt werden. Jedoch stellen diese Modellprojekte bislang nur einen ersten Schritt auf dem Weg zur Implementierung von Ausschreibungen in europäische Politikmaßnahmen dar. Dies ist insbesondere der Fall, da der Einfluss von Faktorspezifitäten und Bestandseffekten im Rahmen wiederholter Ausschreibungen in der Praxis noch keine Berücksichtigung gefunden hat. Innerhalb des Beitrags wird dieses Defizit am Beispiel der Angebotsbewertung innerhalb wiederholter Biodiversitätschutz-Ausschreibungen diskutiert. Um Ausschreibungen zu einem auch nachhaltig wirkungsvollen Instrument der europäischen Agrarumweltpolitik weiter zu entwickeln, wird aktueller Forschungsbedarf durch die Frage aufgeworfen, wie der Einfluss ökonomischer und ökologischer Bestandseffekte unter Berücksichtigung der Relevanz von Faktorspezifitäten und dem Konzept der Fundamentalen Transformation durch einen Umweltindikator einbezogen werden kann. Unmittelbare Anknüpfungsmöglichkeiten für die zukünftige Entwicklung und Implementierung eines Umweltindikators sind im Rahmen der ergebnisorientierten Honorierung pflanzlicher Biodiversität auf Grünlandflächen zu sehen.Ausschreibungen; Agrarumweltpolitik; Bestandseffekte; Ergebnisorientierung; Faktorspezifität; Fundamentale Transformation; pflanzliche Biodiversität; Umweltindikatoren; Vertragsnaturschutz

Das Conservation Reserve Program: Erfahrungen und Perspektiven für die europäische Agrarumweltpolitik

Der langjährige Einsatz und die große Bedeutung des Conservation Reserve Program begründen seine Sonderstellung als marktorientierten Ansatz zur Honorierung von Umweltleistungen. Mit diesem Beitrag wird herausgearbeitet, welche Lehren aus dem Conservation Reserve Program für die Weiterentwicklung der europäischen Agrarumweltpolitik gezogen werden können. Aufbauend auf Grundlagen des Einsatzes von Ausschreibungen für Umweltleistungen werden zunächst das Conservation Reserve Program und der Environmental Benefits Index erläutert. Im Rahmen der sich anschließenden Bewertung wird deutlich, dass mit dem Conservation Reserve Program ein erfolgreiches Verfahren zur Berücksichtigung ökologischer und ökonomischer Aspekte bei der Auswahl zu honorierender Flächen Einzug in die Agrarumweltpolitik der USA gefunden hat. Als zentrale Erfolge wird hierbei sowohl auf die Einführung des Environmental Benefits Index als auch auf die sukzessive Weiterentwicklung des Ausschreibungsdesigns eingegangen. Um Ausschreibungen zu einem wirkungsvollen Instrument der europäischen Agrarumweltpolitik – insbesondere angepasst an die Ziele des weiter an Bedeutung gewinnenden Biodiversitätsschutzes – zu entwickeln, wird abschließend aktueller Forschungsbedarf für zukünftige Modellprojekte aufgezeigt, wobei sowohl grundlegende Erfahrungen aus dem Conservation Reserve Program als auch weitergehende Aspekte Berücksichtigung finden.Agrarumweltprogramme, Ausschreibungen, Biodiversitätsschutz, Environmental Benefits Index, Erosionsschutz, Informationsasymmetrien, Ökosystemdienstleistungen, Vertragsdifferenzierung

Die Pfandpflicht für Einweggetränkeverpackungen

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Die Relevanz von Ökobilanzen für die Umweltgesetzgebung am Beispiel der Verpackungsverordnung

Die deutsche Umweltpolitik ist im Bereich der Verpackungsabfälle durch die abfallwirtschaftliche Prioritätensetzung „Vermeidung vor Wiederverwertung vor Verwertung vor Beseitigung“ gekennzeichnet. Auch hinsichtlich der Getränkeverpackungen ist das umweltpolitische Ziel die Reduktion der durch sie verursachten Umweltbelastungen. Im Zuge dessen sind nach § 1 der Verpackungsverordnung (VerpackV)2 die vorhandenen Mehrwegverpackungssysteme grundsätzlich zu fördern und alle bestehenden Verpackungssysteme ökologisch zu optimieren.