Reverse auctions

Danish reverse auctioning scheme on the road to success

The Danish case study on a reverse auctioning scheme for the ecosystem service of biodiversity production and protection passed a major milestone this spring when the auction was finally launched on the website of Danish Forest Association. Forest owners from the test region were invited to place their bids using a special online platform created for the purpose.

We received in total 25 bids for biodiversity actions in private forests during the auctioning period, which lasted for about 2 months. There were a large and varying number of high quality and creative projects among the pool of bids, showing the effectiveness of the process and platform in attracting interest.

2020-09-29T12:56:28+00:00 September 29th, 2020|Tags: , , , |0 Comments

Using Data Envelopment Analysis on Auction Data for Biodiversity Conservation

Lundhede, T., Strange, N., Termansen, M., Jacobsen, J.B., Vedel, S.E. and Thorsen, B.J. 2019, IFRO Reports, No. 284 Setting aside forest land is a cost effective way to preserve biodiversity in Danish forests in the long‐run (Højgård et al, 2016). In May 2016 the Danish Government launched a program to set aside forest land for biodiversity protection (Ministry of Environment and Food of Denmark, Naturpakken, 2016). The selected mechanism was to abolish forestry operations on selected state and privately owned land. In 2018 almost 14,000 hectares of state‐owned forest land were selected under this program. The designated areas were identified with [...]

Auction mechanisms for setting aside forest for biodiversity

Thorsen, BJ, Strange, N, Jacobsen, JB, Termansen, M & Lundhede, T. 2018. IFRO Report, no. 267 The Danish government has set specific goals for setting aside forest land for biodiversity purposes in the form of untouched forests, where no production forestry operations can be undertaken. Part of these goals will be fulfilled on public and state owned forest land, and parts will be fulfilled on private lands. Setting aside forest land as untouched with the restriction that no further harvest can take place implies the loss of future income from forestry net of related forest operation costs and in 2017 a support grant scheme was designed [...]