Livestock farming and the environmentally friendly management of Alpine pastures represent a traditional form of mountain farming. Grazing and the maintenance of pastures and the Alps are publicly subsidised in recognition of the ecological importance of the activities and because the costs are...

From a theoretical point of view, result-based agri-environmental payments are clearly preferable to action-based payments. However, they suffer from two major practical disadvantages: costs of measuring the results and payment uncertainty for the participating farmers. In this paper, we propose...