Auctions are a potentially suitable policy tool for increasing the efficiency of Agri-Environmental Schemes (AES) through an improved allocation of contracts. In theory, through the auction mechanism, farmers have incentives to reveal their compliance costs, helping to reduce information rents and increase policy cost-effectiveness. The aim of this paper is to simulate the potential contribution of auction mechanisms to the efficiency of AES in Emilia-Romagna (Italy). The results show advantages for auctions compared with traditional flat rate payments based on average compliance costs. However, their performance is worse than flat payments based on marginal compliance costs.

Evaluating the potential contribution of contract auctions to Agri-Environmental Policy efficiency: a simulation model for Emilia Romagna (Italy) / Viaggi D.; Raggi M.; Gallerani V.. - In: AGRICULTURAL ECONOMICS REVIEW. - ISSN 1109-2580. - STAMPA. - 11 (2):(2010), pp. 18-28.

Evaluating the potential contribution of contract auctions to Agri-Environmental Policy efficiency: a simulation model for Emilia Romagna (Italy)

VIAGGI, DAVIDE;RAGGI, MERI;GALLERANI, VITTORIO ALESSANDRO
2010

Abstract

Auctions are a potentially suitable policy tool for increasing the efficiency of Agri-Environmental Schemes (AES) through an improved allocation of contracts. In theory, through the auction mechanism, farmers have incentives to reveal their compliance costs, helping to reduce information rents and increase policy cost-effectiveness. The aim of this paper is to simulate the potential contribution of auction mechanisms to the efficiency of AES in Emilia-Romagna (Italy). The results show advantages for auctions compared with traditional flat rate payments based on average compliance costs. However, their performance is worse than flat payments based on marginal compliance costs.
2010
Evaluating the potential contribution of contract auctions to Agri-Environmental Policy efficiency: a simulation model for Emilia Romagna (Italy) / Viaggi D.; Raggi M.; Gallerani V.. - In: AGRICULTURAL ECONOMICS REVIEW. - ISSN 1109-2580. - STAMPA. - 11 (2):(2010), pp. 18-28.
Viaggi D.; Raggi M.; Gallerani V.
File in questo prodotto:
Eventuali allegati, non sono esposti

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/78269
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact