Approaches to environmental policy for the agricultural sector have involved education programs, direct regulations, and market mechanisms. The effectiveness of these policies has varied depending on the characteristics of the environmental issue and incentives facing producers. This paper reviews, and provides examples of, agri-environmental policy options and points out the scenarios under which the instrument would be most effective. The paper concludes with recommendations on determining the policy solutions to the problem of salinity in Australia. © CSIRO 2005.
- Market mechanisms