ABSTRACT
The concept of policy principles enables people to link the characteristics of various policy network types and broader political structures with the characteristics of different types of new policies and policy reforms. The most radical types of policy changes involve a change of policy principles. Policy change is possible when policy network and broader political structures do not privilege the interests of those favouring the maintenence of established policy principles as the basis of policy change. The best way to reveal the principles upon which a new policy is based is to apply the policy's instruments as indicators. One need to consider which instruments indicate whether high or low cost policies have been employed. This chapter develops operational definitions and classifications of environmental policy instruments in order to undertake a comparison of agri-environmental policies in Denmark and Sweden. The competitive characteristics of markets influence the perceptions of individually adjusted instruments.
