Auctions in an outcome-based payment scheme to reward ecological services in agriculture – Conception, implementation and results



farmer’s transaction costs of making an offer are about 66,48 € and could be presented as a
first brief result and benchmark at that time.

Concerning a reduction of transaction costs, in the second auction the use of the internet
and digital forms will be tested. Asked if farmers would use this way of making an offer, at
least ten of 24 answered with yes, witch offers another potential to reduce farmer’s and
administration’s transaction-costs, compared to the first auction.

Behind the context of the regional foundation of this payment scheme it is interesting how
the farmers think of the fact, that the Regional Advisory Board decides about the demand
for ecological goods. 24 farmers gave an answer and two farmers think it’s very well that
the Regional Advisory Board is the only decision-maker in this context. Three farmers
valuate this as good, twelve as mean, two as bad and five as very bad. This can be
interpreted in a way, that at that time the farmers do not (yet) think of the Regional
Advisory Board as a necessary new institution as a part of the administration. It’s obvious,
that further research is needed to analyse the acceptance of this committee as the special
regional component of the payment scheme, especially with the focus on it’s sustainable
implementation into a future agri-environmental policy.

Also these results of the first two surveys speak for a possible successful and efficient
implementation of most components of this new payment scheme to reward ecological
services in future agri-environmental programs. So finally the following conclusions can
be drawn at that time.

7. Conclusions

The first practical experiences and results during the first auction and the first two surveys
show, that this outcome-based payment scheme to reward ecological services in agriculture
is not just a theoretical construct, but that it also works very well in practise.

The results of the first auction show that in fact very differentiated offers were made by the
farmers in the model-region. This comprises a practical potential for a more efficient use of
public funds by the use of auctions as with a uniform premium, like it is used in current
agri-environmental programs. But still more research is needed to analyse the dynamic and

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