Exploratory Analysis of Landowner Application Characteristics and Reverse Auctions in the Market Based Conservation Initiative

Abstract

Exploratory Analysis of Landowner Application Characteristics and Reverse Auctions in the Market Based Conservation Initiative

By Jessica D. Perrin Department of Forestry and Environmental Resources, North Carolina State University, Raleigh, NC

Abstract New conservation programs are evolving to meet a growing need for the most efficient use of funds while satisfying the needs of the participating landowner and the organization funding the program. The Market Based Conservation Initiative is an eastern North Carolina pilot conservation program using a reverse auction process to meet the needs of the military and voluntary landowners. Regression models are used to explore whether characteristics listed in the landowner applications have a significant effect on the annual contract bid amount per acre and preferred contract length chosen by the landowner in the first bid round. Various statistical methods are used in this study to explore the difference in selected annual contract bid amount per acre and contract length between Phase 1: Bid Round 1 and Bid Round 2. This information can be used to shape future conservation programs or to target viable landowners for existing programs. Further exploration should delve into analyzing the effect of each significant landowner application characteristic on the response variables- annual contract bid amount per acre and contract length. Focus should also be placed on collecting more landowner data and holding subsequent bid rounds if possible to provide additional insight.