Saving a creek one bid at a time: A uniform price auction for urban stormwater retention

Abstract

Urban stormwater runoff degrades waterway health. We describe a market-based approach to identify the most efficient investments to reduce urban stormwater impacts at minimum cost. The framework involves the joint consideration of public and private supply of environmental services across scales; a metric to compare the benefits of interventions across and within scales; an environmental procurement auction to reveal and minimise the cost of private interventions; and an endogenous reserve price to select the optimal portfolio of investments. The paper discusses the economic and environmental rationale for the proposed approach, along with the results of Stormwater Tender, a field trial in M..