ID 5487
Government Denmark
Submitting Entity Organization for Economic Co-operation and Development
Submitted for Fifth Ordinary Meeting of the Conference of the Parties to the Convention on Biological Diversity (COP 5)
Main Information
Title Economic incentives for the transformation of private forest areas into forest reserves in Denmark
Description The study examines economic incentives for transforming privately cultivated forests into strict forest reserves, in accordance with the political goal to double the forested area of Denmark (to 22 per cent) over a 100-year period. Because it was believed to be important to include both public and private lands, the 1994 Danish National Strategy for Natural Forests mandated the increase in forest reserves on public lands, provides grants for reforestation, and offers economic compensation for the voluntary conversion of private forests to strict reserves. Indirect compensation is also given to State-owned forests. The Strategy also includes plans for research programmes, conservation of local genetic resources, and the dissemination of information to foresters, forest users and the general public. An adverse incentive in the form of a regulation that made it illegal to leave major productive forest areas unproductive was also reformed in 1989 to allow exceptions.
Web Link /doc/case-studies/inc/cs-inc-oecd-22-en.doc
Additional Information
Source Study prepared for and summarized in the 1999 OECD Handbook on Incentive Measures for Biodiversity: Design and Implementation. Oganization for Economic Cooperation and Development, Paris.
Countries Denmark
Ecosystems Forest Biodiversity
Regions Western Europe and Others
Incentive Measures Positive Incentives (subsidies, tax breaks, ...)
Reform of Perverse Incentives
Keywords Compensation for loss of use
Conservation payments
Land set-aside payments
Land purchase
Development laws against "unproductive" use
  • United Nations
  • United Nations Environment Programme