article id 420,
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                        Research article
                    
        
                                    
                                    
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                            This paper theoretically and empirically analyzes the design of  cost-effective diffuse load abatement in forestry. Harvesting with  related forest regeneration and drainage maintenance increases nutrient  leaching, while riparian buffer strips and adjustments in drainage  maintenance technology can be used to prevent this leaching. By  utilizing a two-period model it is shown that cost-efficiency requires  the establishment of a buffer strip system and a reduction in both  current harvesting, and in drainage maintenance – if practized –  relative to the private optimum to reflect their effects on water  pollution. A simulation analysis was conducted to assess the magnitudes  of the decision variables of the theoretical model, as well as to  evaluate alternative technologies for the implementation and use of  buffer strips and for the adjustment of drainage maintenance. The  results for a representative forest holding in the southern half of  Finland show that it is possible to considerably reduce total phosphorus  leaching with minor cost.
                        
                
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                            Matero,
                            University of Joensuu, Faculty of Forestry, P.O. Box 111, FI-80101 Joensuu, Finland
                                                        E-mail:
                                                            jukka.matero@joensuu.fi
                                                                                        