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Abstract
Contracting with private landholders for labor towards production of environmental services
(payment for actions) or the environmental services themselves (payment for outcomes) is reliant
on the environmental organization’s ability to monitor and assess the environmental outcomes
provided. Inaccurate and costly assessment reduces the cost effectiveness of the contract. Different
assessment technologies will have different impacts on the cost effectiveness and optimal
contracting choice of the environmental organization. The paper compares the influence of field
assessment by a local expert, and remote assessment via satellite imagery, on the optimal
contracting decision for the Western Australian wheat belt.