However, the decision to end tax relief on protective forests sends the wrong signal on nature protection in forests.34 Fairness of forestry tax revenue distribution among municipalities should instead be addressed via a broader income equalisation policy. Proceeds of the forestry tax represent a very small share (0.3% in 2012) of total municipal income.35 Moreover, due to tax exemptions and the varying age of forests, the tax proceeds vary significantly among forest districts and thus among municipalities. As a voluntary, flexible, incentive-based and site-specific instrument, PES can provide potentially large gains in cost-effectiveness compared to indirect payments or other regulatory approaches used to meet policy (e.g. forest biodiversity) objectives (OECD, 2010).