The recent decision to continue cattle grazing in the VANP has not been uni
formly welcomed. There exists significant scientific evidence detailing the
environmental impact of grazing. This paper examines whether an opportunit
y has been missed to resolve the ongoing conflict that accompanies the cont
inuation of grazing in the VANP. The potential of economic instruments in r
esolving this unique land use conflict is examined. It is argued unambiguou
sly that the compensation of graziers for a change in existing institutiona
l alpine grazing arrangement can help to facilitate a resolution of the con
flict. (C) 2000 Elsevier Science B.V. All rights reserved.