Nudging farmers to sign agri-environmental contracts: the effects of a collective bonus

Laure Kuhfuss, Raphaële Préget (), Sophie Thoyer () and Nick Hanley

No 2015-06, Discussion Papers in Environment and Development Economics from University of St. Andrews, School of Geography and Sustainable Development

Abstract: Using a choice experiment, this paper shows that the introduction of a conditional collective bonus in an agri-environmental scheme (AES) can improve farmers’ participation and increase land enrolment for lower overall budgetary costs. This monetary bonus is paid per hectare of enrolled land in addition to the usual agri-environmental payment if a given threshold is reached in terms of farmers’ participation in the region or catchment of interest. Using a choice experiment, we estimate the preferences of wine growers in the South of France for such a bonus. We show that it contributes to increased expectations of farmers on others’ participation, therefore changing the pro-environmental social norm and initiating group dynamics towards the adoption of less pesticide-intensive farming practices over time.

Keywords: payment for environmental services; choice experiment; collective incentive; agri-environmental schemes; social norm; behaviour (search for similar items in EconPapers)
JEL-codes: Q15 Q18 Q25 Q28 Q53 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2015-02
New Economics Papers: this item is included in nep-agr, nep-dcm and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Working Paper: Nudging farmers to sign agri-environmental contracts: the effects of a collective bonus (2015)
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