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In order to integrate ecosystem services (ES) in designing agri-environmental policy, we investigated both the demand for, and supply of, ES from agricultural environments in Finland. Using the discrete choice experiment method, we measured citizens’ willingness to pay (WTP) for four different ES and analysed farmers’ compensation request (willingness to accept [WTA]) for producing these services. Biodiversity and water quality gathered the highest WTA of farmers, but also the highest WTP of citizens. Overall, the average WTA exceeded the WTP for almost all attributes and levels, but 20–27 per cent of farmers were willing to produce the ES with the compensation lower than citizens’ WTP.

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Contingent valuation, Fat tail problem, Pinched spike model, Forest conservation,

To be presented, with the permission of the Faculty of Agriculture and Forestry of the University of Helsinki, for public examination in Sali 13 of the Main Building, Fabianinkatu 33-Päärakennus, Helsinki on 6 th November 2015 at 12 noon. 2