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Australian Journal of Agricultural and Resource Economics >
Volume 51, Issue 1, March 2007 >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/118317
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| Title: | Optimisation and the selection of conservation contracts |
| Authors: | Hajkowicz, Stefan
Higgins, Andrew J.
Williams, Kristen
Faith, Daniel P.
Burton, Michael P. |
| Keywords: | market based instruments
environmental services auction
environment
benefits index
conservation planning |
| Issue Date: | 2007 |
| Abstract: | This paper explores alternative techniques for the selection of conservation contracts
under competitive tendering programs. Under these programs, purchasing decisions
are often based on the benefits score and cost for proposed projects. The optimisation
problem is to maximise the aggregate benefits without exceeding the budget. Because
the budget rarely permits all projects to be funded, there is a binary choice problem,
known in the operations research published work as a knapsack problem. The decision-maker
must choose which projects are funded and which are not. Under some
circumstances, the knapsack problem can be unsolvable because computational
complexity increases exponentially with the number of projects. This paper explores
the use of several decision rules for solving the optimisation problem including the use
of advanced meta-heuristics. It is shown that commonly applied techniques for project
selection may not be providing the optimal solution. Improved algorithms can increase
the environmental programs benefits and staying within budget. The comparison of
algorithms is based on real data from the Western Australian Conservation Auction. |
| URI: | http://purl.umn.edu/118317 |
| Institution/Association: | Australian Journal of Agricultural and Resource Economics>Volume 51, Issue 1, March 2007 |
| Total Pages: | 18 |
| From Page: | 39 |
| To Page: | 56 |
| Collections: | Volume 51, Issue 1, March 2007
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Files in This Item:
| File |
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Size | Format |
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| j.1467-8489.2007.00345.x.pdf | | 148Kb | PDF | View/Open |
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