Auctions are a potentially suitable policy tool for increasing the efficiency of Agri- Environmental Schemes (AES) through an improved allocation of contracts. In theory, through the auction mechanism, farmers have incentives to reveal their compliance costs, helping to reduce information rents...

The aim of this paper is to test the relevance of considering private fixed transaction costs for contract design of Agri-Environmental Schemes, when transaction costs are negatively correlated to marginal compliance costs. In order to do so, a principal-agent model of contract design under...

The application of agri-environmental policies (reg. EEC 2078/92 and reg. EU 1257/99) has produced a wide literature about the best policy design options. The data arising from the first ex post evaluation exercises have contributed only partially to the discussion about how such measures should...