Social dimensions of procurement auctions for environmental service contracts: Evaluating trade-offs between cost-effectiveness and participation by the poor in rural Tanzania

Determining the level of payment and selecting participants are important but frequently neglected issues that affect social, economic and environmental performance of payment for environmental services (PES) programs. We use a pilot auction to address these issues in the context of a PES program in...

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Autores principales: Jindal R, Kerr JM, Ferraro, P.J., Swallow, B.M.
Formato: Journal Article
Lenguaje:Inglés
Publicado: Elsevier 2013
Materias:
Acceso en línea:https://hdl.handle.net/10568/41955
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author Jindal R
Kerr JM
Ferraro, P.J.
Swallow, B.M.
author_browse Ferraro, P.J.
Jindal R
Kerr JM
Swallow, B.M.
author_facet Jindal R
Kerr JM
Ferraro, P.J.
Swallow, B.M.
author_sort Jindal R
collection Repository of Agricultural Research Outputs (CGSpace)
description Determining the level of payment and selecting participants are important but frequently neglected issues that affect social, economic and environmental performance of payment for environmental services (PES) programs. We use a pilot auction to address these issues in the context of a PES program in Tanzania's Uluguru Mountains. Two-hundred fifty-one local farmers submitted sealed bids in the auction. The results reveal the supply of PES contracts at different prices. Simulations using the auction results and household data show large tradeoffs between achieving cost effectiveness and maximizing participation by poor households. A monitoring survey 21 months after the auction found that most auction winners trees had survived, with performance uncorrelated to the farmer's poverty status or bid level. Although aspects of our auction design limit the strength of some of the conclusions we draw from the data, our study shows how pilot auctions can assist decision makers in estimating payment levels for PES contracts. Auction participants stated that the auction provided transparency in contract allocation and that winners felt peer pressure to comply with contracts, which suggest areas for future research regarding the potential advantages of using auctions to allocate PES contracts in developing countries.
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spelling CGSpace419552024-08-27T10:34:44Z Social dimensions of procurement auctions for environmental service contracts: Evaluating trade-offs between cost-effectiveness and participation by the poor in rural Tanzania Jindal R Kerr JM Ferraro, P.J. Swallow, B.M. agriculture climate auctions carbon sequestration forestry Determining the level of payment and selecting participants are important but frequently neglected issues that affect social, economic and environmental performance of payment for environmental services (PES) programs. We use a pilot auction to address these issues in the context of a PES program in Tanzania's Uluguru Mountains. Two-hundred fifty-one local farmers submitted sealed bids in the auction. The results reveal the supply of PES contracts at different prices. Simulations using the auction results and household data show large tradeoffs between achieving cost effectiveness and maximizing participation by poor households. A monitoring survey 21 months after the auction found that most auction winners trees had survived, with performance uncorrelated to the farmer's poverty status or bid level. Although aspects of our auction design limit the strength of some of the conclusions we draw from the data, our study shows how pilot auctions can assist decision makers in estimating payment levels for PES contracts. Auction participants stated that the auction provided transparency in contract allocation and that winners felt peer pressure to comply with contracts, which suggest areas for future research regarding the potential advantages of using auctions to allocate PES contracts in developing countries. 2013-03 2014-08-15T12:13:12Z 2014-08-15T12:13:12Z Journal Article https://hdl.handle.net/10568/41955 en Limited Access Elsevier Jindal R, Kerr JM, Ferraro PJ, Swallow BM. 2013. Social dimensions of procurement auctions for environmental service contracts: Evaluating trade-offs between cost-effectiveness and participation by the poor in rural Tanzania. Land Use Policy 31:71-80(2011).
spellingShingle agriculture
climate
auctions
carbon sequestration
forestry
Jindal R
Kerr JM
Ferraro, P.J.
Swallow, B.M.
Social dimensions of procurement auctions for environmental service contracts: Evaluating trade-offs between cost-effectiveness and participation by the poor in rural Tanzania
title Social dimensions of procurement auctions for environmental service contracts: Evaluating trade-offs between cost-effectiveness and participation by the poor in rural Tanzania
title_full Social dimensions of procurement auctions for environmental service contracts: Evaluating trade-offs between cost-effectiveness and participation by the poor in rural Tanzania
title_fullStr Social dimensions of procurement auctions for environmental service contracts: Evaluating trade-offs between cost-effectiveness and participation by the poor in rural Tanzania
title_full_unstemmed Social dimensions of procurement auctions for environmental service contracts: Evaluating trade-offs between cost-effectiveness and participation by the poor in rural Tanzania
title_short Social dimensions of procurement auctions for environmental service contracts: Evaluating trade-offs between cost-effectiveness and participation by the poor in rural Tanzania
title_sort social dimensions of procurement auctions for environmental service contracts evaluating trade offs between cost effectiveness and participation by the poor in rural tanzania
topic agriculture
climate
auctions
carbon sequestration
forestry
url https://hdl.handle.net/10568/41955
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