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  1. Library Resource
    Conference Papers & Reports
    June, 2009

    This paper examines how jointness of environmental benefits and environmental heterogeneity affect auction designs and the potential benefits of green auctions over conventional flat-rate agri-environmental policies. A sealed bid green auction is used to promote an agri-environmental program with two environmental targets, nutrient runoff reduction and biodiversity provision. A score index comprising of environmental performance and the monetary size of bid is developed to rank the farmers’ applications. The green auction is analyzed analytically and then empirically by using Finnish data.

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