@article{2150f5a558c844ffb9ef6076c088da87,
title = "Spatial Coordination and Joint Bidding in Conservation Auctions",
abstract = "Spatial coordination of land use change is pivotal in agri-environmental policy to improve the delivery of environmental goods. This paper implements a laboratory experiment to study spatial coordination in a conservation auction. In addition to letting individual producers bid competitively against each other to supply environmental goods, we ask whether opportunities for joint bidding can enhance spatial coordination in the auction cost-effectively. Auction performance depends on the nature of incentives for individual bids; in particular, whether an agglomeration bonus is of-fered for individual bids. With an individual bonus in place, joint bidding gives no im-provement in either environmental benefits procured or cost-effectiveness. Absent an individual bonus, joint bidding improves environmental performance but can decrease cost-effectiveness. Further, across both individual and joint bidding treatments, the average environmental benefits, degree of spatial coordination, and cost-effectiveness are greater, and amount of seller markups lower, with multiple-round bidding com-pared to single-round bidding.",
keywords = "agri-environmental schemes, communication, ecosystem services, experiment, networks",
author = "Simanti Banerjee and Cason, {Timothy N.} and {de Vries}, {Frans P.} and Nick Hanley",
note = "Funding Information: Biodiversity, Animal Health and Comparative Medicine, University of Glasgow (nicholas.hanley@ glasgow.ac.uk). We are grateful to the Marine Alliance for Science and Technology for Scotland (MASTS) pooling initiative for financial support. MASTS is funded by the Scottish Funding Council (grant reference HR09011) and contributing institutions. We thank James Keeler and Town Oh for excellent research assistance. For valuable comments, we thank three anonymous referees, the editor (Christian Vossler), Ben Balmford, John Rolfe, participants at the World Congress of Environmental and Resource Economists (Gothenburg 2018), the AARES (Melbourne 2019), the Land, Environment, Economics and Policy Institute (LEEP, Exeter 2019), EAERE (Manchester 2019) conferences, and seminar participants at the Toulouse School of Economics, the University of Hamburg, the University of Minnesota, the University of Nebraska–Lincoln, and the University of Amsterdam. Funding Information: We are grateful to the Marine Alliance for Science and Technology for Scotland (MASTS) pooling initiative for financial support. MASTS is funded by the Scottish Funding Council (grant reference HR09011) and contributing institutions. We thank James Keeler and Town Oh for excellent research assistance. For valuable comments, we thank three anonymous referees, the editor (Christian Vossler), Ben Balmford, John Rolfe, participants at the World Congress of Environmental and Resource Economists (Gothenburg 2018), the AARES (Melbourne 2019), the Land, Environment, Economics and Policy Institute (LEEP, Exeter 2019), EAERE (Manches-ter 2019) conferences, and seminar participants at the Toulouse School of Economics, the University of Hamburg, the University of Minnesota, the University of Nebraska–Lincoln, and the University of Amsterdam. Publisher Copyright: {\textcopyright} 2021 The Association of Environmental and Resource Economists. All rights reserved. Published by The University of Chicago Press for The Association of Environmental and Resource Economists.",
year = "2021",
month = sep,
doi = "10.1086/714601",
language = "English (US)",
volume = "8",
pages = "1013--1049",
journal = "Journal of the Association of Environmental and Resource Economists",
issn = "2333-5955",
publisher = "University of Chicago Press",
number = "5",
}