Non-industrial Private Forest Owners'demand for Environmental Quality

Biological diversity can be sustained in the fragmented forest environments in two ways: by preserving small-scale forest habitats and by applying ecological forest management practices. In Finland, where 63% of forestland area is privately owned, private landowners' willingness to carry out these actions is of the utmost importance. We may ask "How landowners' perceptions of environmental values alter their land management objectives and inspire them to improve environmental quality?" and "What implication may this have on designing cost- effective policy instruments and extension services to activate and direct non-industrial private forest management?" The results show that landowners' annual willingness to pay (WTP) for environmental quality varies between 0.0-0.8% of their total annual income and between 0.4-16.0% of their annual timber sales income. Acceptability of alternative policy measures (other than direct compensation) was limited. Landowners' preference grouping and forest holdings' EQindex were found as promising techniques for policy makers and forest managers in improving client oriented and sustainable forest management planning.