Policy Experiments for the US Intermountain West Native Seed Industry

摘要

The increasing frequency of fires and the focus on energy development in the western United States have expanded need for reclamation of disturbed lands. Government policy significantly influences demand for native seed and prioritizes use of native plants to improve reclamation success. However, existing native seed supplies are inadequate for current reclamation needs. The U.S. Bureau of Land Management (BLM) seeks to implement policies that will increase the quantities supplied. We conduct laboratory market experiments to analyze the effect of different policies BLM might implement on price, quantity traded, and earnings, especially in light of BLM's role in the market as largest buyer. Four treatments are examined, combiningforward (production-to-demand) or spot (advance production) delivery and constant (seller unit earnings are constant and known) or variable demand (seller unit earnings randomly adjusted without notice) under big buyer influence (four sellers, two small buyers, one big buyer). A fifth competitive treatment (four sellers, four buyers) with forward contracting and constant demand provides a benchmark by which to gauge big buyer effects on market outcomes. Results provide evidence that adoption of forward contracting or reduction in BLM's demand variability would increase seller earnings and native seed production.