An Agent Based Analysis of Combinatorial Bidding for Spatially Targeted Multi-Objective Environmental Programs
Authored by Md Sayed Iftekhar, John G Tisdell
Date Published: 2016
DOI: 10.1007/s10640-015-9882-4
Sponsors:
Australian Government’s National Environmental Research Program
Platforms:
No platforms listed
Model Documentation:
ODD
Mathematical description
Model Code URLs:
Model code not found
Abstract
Establishing national corridors have been identified as a policy
priority for environmental and biodiversity conservation in many parts
of the world. We explore the performance of a combinatorial landscape
auction design to establish environmental corridors using an agent based
simulation model. This modelling technique is highly flexible in
modelling decision making processes involving heterogeneous landholders.
Such structures allow landholders the opportunity to submit joint bids
and, as such, share in the benefits that synergies across the landscape
provide. The contribution of the paper is threefold. First, we compare
spatial and non-spatial project selection to observe whether it is
possible to achieve corridor outcomes with a non-spatially targeted
project selection mechanism? We observe that while a corridor project
selection mechanism increases the procurement cost, such selection
mechanisms are necessary for spatially targeted objectives. Second, we
study the effect of allowing agents to form coalitions and submit joint
bids. We find evidence that joint bidding substantially increased
procurement costs especially when the agency's target was to secure
environmental corridors. Third, we study the combined effect of off-site
synergies and joint bidding. We observe that relative benefits from
off-site synergy are higher in spatial targeting programs compared to
non-corridor targeting programs.
Tags
Competition
models
Economics
Ecosystem services
Biodiversity conservation
Auctions
Game-theory
Queensland