Many conservation programs offer financialcompensation to farmers in exchange for socially desiredservices, such as soil conservation or biodiversity protection.Realization of the conservation objective at minimum costrequires payments to just cover the extra costs incurred byeach individual...

This model explicitly incorporates thedynamic aspects of conservation programs withincomplete compliance and it allows landholders’behaviour to change over time. We find that incompleteand instrument-specific enforcement can have asignificant impact on the choice between subsidyschemes and...