Abstract

The thesis regards the economic field of an interdisciplinary research project concerning an outcome orientated remuneration of ecological services on grassland sites. The practical reference results particularly from two changes in agri-environmental payments, determined by the EAFRD-Regulation. Therefore the survey aims at the examination of auctions as well as the question of integrating the farmer's individual transaction costs into agri-environmental payments. From an economics point of view the main focus is the integration of free market elements into the EU's agri-environmental policy under efficiency criteria, whereby the protection of plant biodiversity is focused. Furthermore the question will be answered to what extent the transaction cost economics framework can be used to analyze the relationship between the administration and the farmers within an auction.The thesis is structured as follows. The analysis begins with a brief essay on the EU's agri-environmental policy and the research project before the transaction cost economics framework is presented. The following section introduces the concept of auctions and the auction design used in the case study. To link the theoretical aspects and the empirical work, the specific relationship within an auction is analyzed from a transaction cost economics point of view and the theoretical framework is adjusted by introducing a new governance structure. Afterwards the empirical research is focused by analyzing the conception and results of two auctions witch took place in a case study area (administrative district Northeim in Lower Saxony) in 2004/2005 and 2006. Furthermore aspects of the farmers' price calculation and bidding behavior are examined. The second empirical topic considers the evaluation of the farmers' transaction costs for taking part in both auctions. Finally further need for research is discussed and the general conclusions are summarized.

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