The choice of policy mechanisms for encouraging environmentally beneficial land-use change should depend on the relative levels of private (or internal) net benefits, and public (or external) net benefits. A map of recommended policy mechanisms is developed, depending on the relative levels of these variables. Positive incentives, negative incentives and extension need to be targeted carefully to appropriate projects - where private net benefits are closer to zero, and/or public net benefits are more extremely positive or negative. Technology development is suggested where private net benefits are negative, but not too negative, and public net benefits are positive. No action is recommended for many potential projects.