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The Tinbergen Rule has been used to criticise multi-target policy instruments for being inefficient. The aim of this paper is to clarify the role of multi-target policy instruments using the case of agri-environmental policy. Employing an analytical linear optimisation model, this paper demonstrates that there is no general contradiction between multi-target policy instruments and the Tinbergen Rule, if multi-target policy instruments are embedded in a policy-mix with a sufficient number of targeted instruments. We show that the relation between cost-effectiveness of the instruments, related to all policy targets, is the key determinant for an economically sound choice of policy instruments. If economies of scope with respect to achieving policy targets are realised, a higher cost-effectiveness of multi-target policy instruments can be achieved. Using the example of organic farming support policy, we discuss several reasons why economies of scope could be realised by multi-target agri-environmental policy instruments. [ABSTRACT FROM AUTHOR]

Recent investigations have indicated that environmental and conservation policies frequently fail to reach anticipated aims, which raises concern over the cost-effectiveness of governmental policy-related expenditure. The limited effectiveness of policies is often attributed to methodological aspects of policy implementation. However, an alternative reason can be the limited internalization of policies, so that these are only implemented to a minimum level to attain benefits or avoid penalties. It is postulated that increased internalization of policies can considerably improve their effectiveness and that suitable institutional arrangements exist to support such increases in internalization. In this paper, we review the available literature on internalization and its institutional aspects, and propose a framework, based on self-determination theory, for evaluation of potential internalization by farm managers that are expected to implement policies. This method was applied to a small case study for dairy farmers in the nationally important landscape of the Northern Friesian Woodlands, The Netherlands. The results showed that organic farmers were internally motivated for nature conservation and had strong institutional links. They were more likely to internalize the goals of environmental policy schemes than conventional farmers who focused predominantly on financial rewards. We suggest that policy developers promote internalization of policies by tuning policy instruments to the specificities of farmers'' motivations to preserve farmers'' nature and to focus on institutional support to help internalization. [Copyright &y& Elsevier]