Testing for allocation efficiencies in water quality tenders across catchments, industries and pollutants: a north Queensland case study

J ROLFE, Romy Greiner, Jill Windle, Atakelty Hailu

    Research output: Contribution to journalArticle

    Abstract

    The design of competitive tenders to purchase environmental services requires judgements to be made about the funding scale and tender scope, with the latter incorporating considerations of geographic area, industries involved and the types of environmental outputs required. Increasing the scale and scope of tenders increases the likelihood that a larger range of proposals will be proposed and cost-effective ones selected. However, the use of larger and more broadly scoped tenders may reduce landholder participation and increase asking bids. In the study reported here, these issues have been tested with a single water quality tender run in north-eastern Australia in 2007 and 2008. Post hoc tests and workshop exercises show that while larger-scale and scope tenders can generate efficiency gains, care has to be taken to maintain participation and avoid higher bid levels. � 2011 The Authors. AJARE � 2011 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd.
    Original languageEnglish
    Pages (from-to)518-536
    Number of pages19
    JournalThe Australian Journal of Agricultural and Resource Economics
    Volume55
    Issue number4
    Early online date3 Aug 2011
    DOIs
    Publication statusPublished - Oct 2011

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