Encouraging Participation in Market Based Instruments and Incentive Programs

Trust, business orientation, information seeking behaviour and connectedness are amongst the best predictors of participation in an Market Based Instrument (MBI) or incentive program.

Designing or delivering MBIs and incentives in the following ways were found to be helpful:

  • Use Landcare, local CMAs/regional bodies or industry groups to deliver the programs.
  • Provide technical assistance particularly for identifying potential management actions and ongoing technical assistance. Provide help writing applications if possible.
  • Indicate the probability of success with past grants.
  • For payments, landholders prefer to receive a larger upfront payment with the residual paid in equal yearly payments or payment after each stage has been completed, rather than equal yearly payments.
  • For ongoing projects, contracts of 3-5 years with an optional extension are preferred to projects of fewer years in length.
  • For monitoring, include site visits half way and at the end of the project rather than just at the end of the project, or sending in photos at key stages.

Those most likely to participate in MBI and incentive programs are those with the highest socio-demographic status, which raises concern about efficiency and equity. It was found that age was negatively and education was positively related to participation.

There was evidence that if landholders hear about a program via a direct contacts (eg through extension officers) they are more likely to participate. The most effective communication messages emphasise the benefits to landholders and how the program will improve the management of their property and their business.

More about Encouraging Participation in Market Based Instruments and Incentive Programs project

Final report
Download» Encouraging Participation in Market Based Instruments and Incentive Programs final report

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