Green auctions and reduction of information rents in payments for environmental services: an experimental investigation in Sunan County, northwestern China.

ABSTRACT: Reducing information rents is an important task for government agencies wishing to purchase maximal environmental services with limited budgets. This paper reports on several green auction options for reducing information rents and improving the performance of the "Grain for Green" Payments for environmental services (PES) program implemented in northwestern China. In r experimental auctions and investigations, door-to-door interviews were conducted and bidding envelopes and survey questionnaires were used to determine the offers and the foregone profits of the participants. Three scenarios are analyzed in this paper: a uniform price auction, a discriminatory price auction, and an opportunity-cost system. The results show that compared to the uniform price auction system, the other auction

SUBMITTER: Deng X 

PROVIDER: S-EPMC4368807 | biostudies-literature | 2015

REPOSITORIES: biostudies-literature