Asymmetric information and contract design for payments for environmental services

TR Number

Date

2008

Journal Title

Journal ISSN

Volume Title

Publisher

Elsevier B.V.

Abstract

This article addresses the informational rents that are created in payments for environmental services (PES) contracts by asymmetric information between landowners and conservation buyers. Three options for reducing informational rents are described and compared: 1)gathering information on compliance costs, 2)screening contracts, and 3)procurement auctions.

Description

Metadata only record

Keywords

Environmental services, Payments for environmental services, Conservation strategy, PES, Asymmetric information, Contracts, Screening, Auctions, Informational rents, Opportunity costs

Citation

Ecological Economics 65(4): 810-821