Regulatory incentives: are non-voluntary measures designed to compel management change using the coercive powers of government. Regulations designed to protect native vegetation are an example of coercive policies.
Table 4 provides a brief description of the types of incentive schemes that fall under each category, some( largely) Australian examples for each incentive type as well as a brief description of the strength and challenges associated with each incentive type. A discussion on which incentives were considered viable for the LDC project is provided in section 3.3. A detailed discussion of different types of incentive schemes and their strength and challenges is provided in APPENDIX C. Lessons learnt from previous policy initiatives designed to influence land management in the BBB and broader is summarised in APPENDIX D and incentives currently available to landholders in the BBB are summarised in APPENDX E.
3.2 Factors to consider when choosing an incentive( or mix)
There are many incentive types and quite often an incentive scheme will use a mix of incentive types to fulfil the land management objectives( e. g. extension and covenant, or covenant and payment). In this section we discuss key factors to assist in deciding on the right mix of incentives for the problem. Key concepts introduced in this section include choosing the incentive action and design with reference to:
� The ongoing public and private benefits; � The cause of the market failure; � The existence of additional objectives for an incentive scheme( engagement); � Can / should the incentive be targeted? � The risk of crowding out good behaviour and the objective to crowd in good behaviour; � Focussing on outputs, inputs or outcomes; � Current and future institutions and governance( including regulation and compliance); � Nesting, stacking and path dependencies; and � Maintaining the benefits through time.
Recommendations on what this means for the LDC BBB incentive scheme are introduced at the conclusion of each concept but discussed in more detail in the recommendations section( Section 4).
Landholders driving change: Exploring new incentives | 19