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Conservation covenants have become a popular tool to protect land in perpetuity. Understanding the impact of a covenant on price and enrolment in a conservation programme can help decision makers plan their interventions more carefully, and judge whether the extra longevity justifies the changed participation rate and cost. This paper uses the case study of a conservation auction in Queensland, Australia, to investigate the influence of a compulsory conservation covenant on bid price and participation. Results from the case study indicate that inclusion of a mandatory covenant reduced participation rates and increased costs, and resulted in a narrow subset of the rural population participating in the auction and providing competitive bids. In particular, non-production landholders were more likely to participate and to provide lower bids.
