Since 1992 the provision of agri-environmental schemes (AESs) has been obligatory for member states of the European Union. However, decisions concerning the actual design of schemes and measures are left to member states who have to integrate this policy within their administrative structures...

Recent changes in European agri-environmental policy allow farmers' transaction costs (TCs), also called private TCs, to be taken into account when calculating compensation payments for agri-environmental schemes (AESs). This gives rise to questions as to the significance of these costs and the...