Stewardship payments |
Ongoing( over the life of the contract) payments for stewardship. These can be paid on actions or outputs or outcomes. These can be determined individually or allocated as a part of a competitive process such as a tender. E. g.:
� National environmental stewardship program
� Fitzroy tender( competitive allocation)
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� If paying for outcomes may pay for more than one action over time
If conducted as a competitive process:
� Reveals the cost for landholders to conduct activities
� Potential to be a more cost-effective approach to allocating a fixed budget than a fixed price scheme
� Informs landholders of the public benefit of land management
� The competitive process may be of interest to landholders who have not previously engaged with programs
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� Deciding on duty of care over which stewardship is rewarded
� Deciding on the correct level of payment
� Budget to facilitate payments
� As it is fixed price, does not utilize the heterogeneity of the landscape and landholder cost to get the greatest bang for the buck
� May not engage with landholders who do not usually engage
If conducted as a competitive process:
� Need enough sellers to be competitive( which may not be the case if the tender was only available in BBB)
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� Need to generate a benefits index to assess offers for value for money |
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� Design and implementation of such a scheme can be complicated which can generate high transaction costs to design, implement and administer |
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� Need to consider if paying over time or one-off payments for one off action |