We used Ricardian framework with heterogeneous land quality to analyse how policies used to support farm incomes, reduce negative agri-environmental externalities and enhance the provision of positive externalities influence land allocation decisions and land prices. Four agri-environmental...

Heterogeneity of agricultural landscapes may necessitate the use of spatially targeted instrument combinations to implement the social optimum. But compliance with these policies may require costly enforcement. This paper examines the design of agri-environmental policies featuring two of the...

We study the multifunctional character of agriculture in a model of endogenous input use and land allocation augmented by biodiversity, landscape amenity, and nutrient runoff. While biodiversity and landscape amenities represent the public good aspects of agriculture, nutrient runoff represents...

This research studies the use of auctions for reducing leaching of phosphorus and nitrogen into the Baltic Sea. Auctions are introduced as a tool for creating environmental contracts in agriculture for the first time in Finland. A controlled laboratory experiment is used to analyze the effect of...