Combining Auctions and Performance‐Based Payments in a Forest Enrichment Field Trial in Western Kenya

• DOI: 10.1111/cobi.12278
• Publication Date: 2014-03-25T21:22:01Z
• Authors: MERCELYNE KHALUMBA; TOBIAS WüNSCHER; SVEN WUNDER; MIRJAM BüDENBENDER; KARIN HOLM‐MüLLER
• Keywords: Baseline (sea); Kenya

Cost-effectiveness is an important aspect in the assessment of payments for environmental services (PES) initiatives. In participatory field trials with communities Western Kenya, we combined procurement auctions forest enrichment contracts performance-based and compared outcomes a baseline scenario currently used by Kenyan Forest Service. Procurement were most cost-effective. The competitive nature auction reduced contracting expenses (provision costs), result-oriented provided additional incentives to care planted seedlings, resulting their improved survival rates (service quantity). These gains clearly exceeded increases transaction costs associated conducting auction. number income-poor participants winners was disproportionately high local institutional buy-in remarkably strong. Our approach may, however, require adaptations when conducted at larger scale. Although monitored limited prohibited use statistical tests, our study one first reveal benefits using PES developing countries.