article id 359,
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                        Research article
                    
        
                                    
                                    
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                            Finland has launched a new policy programme (METSO) to enhance  conservation of forest biodiversity. In non-industrial private forests,  the policy is based on economic incentives and voluntarism on the part  of forest owners. While biodiversity conservation is the main target of  the policy, social acceptability is considered to be of great  importance. This study examined the factors that affect the  acceptability of biodiversity conservation contracts among private  forest owners, and the amount of compensation needed to keep the forest  owners at least as well off as before the contract. Choice experiment  method was used to analyse the data that were collected by surveying  3000 Finnish private forest owners. Analysing separately those  respondents who were willing to enter into a conservation contract  allowed an assessment of the impact of forest owners’ heterogeneity on  compensation amount. The results show how the welfare of forest owners  shifts when the contract terms are changed. In a base scenario the  forest owner was assumed to be the initiator of the contract that would  require only small patches of forest to be protected, and would also  bind new forest owners over its duration of ten years. For all  respondents, the average demand for compensation would be around 224  euros annually. When those always choosing the “no additional  conservation” alternative were excluded, the average welfare impact of  the base scenario was positive.
                        
                
                                            - 
                            Horne,
                            Finnish Forest Research Institute, Unioninkatu 40 A, FI-00170 Helsinki, Finland
                                                        E-mail:
                                                            paula.horne@metla.fi