Rational land use decisions of private landowners are analysed in the framework of Common Agricultural Policy and other public support schemes effective in Finland in 2003. Net present values are computed for a marginal hectare of a typical Finnish farm. Three alternative land uses are...

In general, the use of incentive payments to landholders in environmental programs is poorly thought through. This article discusses situations where environmental incentive payments are more likely to be a cost-effective response by environmental funders. It is proposed that incentives can be...