DETERMINANTS OF COST-EFFECTIVE MANAGEMENT AGREEMENTS – AN AUSTRIAN IMPLEMENTATION ANALYSIS

Abstract
In economic literature, nature is generally referred to as input for industrial or agricultural production
or as a source of ecological services supporting productivity. However, this paper addresses nature as
the deliberate outcome of human intervention in landscapes governed by management agreements. In
this case, the ‘production of nature’ entails payments to landholders (mostly farmers) and expenses for
administrative services, which raises questions about the cost-effective allocation of public funds.
An implementation analysis of Austrian management agreements sheds light on the central coordination of demand and supply of landscape enhancing services provided by individual landholders.
Mechanisms for revealing regional preferences for landscape development are rarely applied. The
actual impact of management agreements on the landscape depends on inputs such as:
• How ecologically valuable or promising the sites involved are,
• The efforts of skilled and committed landholders,
• Context-sensitive management techniques,
• Suitable equipment and material,
• Trust and networks,
• The degree to which institutions encourage efficacy and equity.
Examples illustrate how Austrian conservation agencies try to combine high-quality inputs for a costeffective provision of on-farm landscape assets.