Increasing environmental outcomes with conservation tenders: The participation challenge

Abstract Incentive payments to landholders have become increasingly popular as mechanisms achieve conservation goals. Within these economists commonly recommend competitive tenders over fixed rate payment schemes because (a) specialist knowledge of about their own enterprises and costs can be utilized, (b) auction prices are more likely reflect the marginal value resources being used produce environmental outcome, (c) scope for rent seeking is reduced by competition between landholders. Yet there very little uptake agrienvironmental schemes, potentially difficulties in generating sufficient levels landholder participation make effective. In this paper we summarize efficiency benefits using tenders, analyze reasons why rates may so low, suggest potential address this.