Objectives of agri-environmental policy instruments and criteria for policy evaluation

The fundamental purpose of agri-environmental policy instruments is to achieve environmental policy objectives that would otherwise not be achieved given the absence or poor functioning of markets. Achieving those objectives requires either controlling environmental stress, such as polluting emissions, or inducing farmers to undertake pro-environmental activities to increase the flow of ecological services, such as management of agricultural practices and land to enhance desired wildlife habitat. In either case, achieving the desired end requires changes in producer decisions consistent with the achievement of the agri-environmental policy objectives.