Farmers’ Preferences for the Design of an Agglomeration Bonus in the Context of Peatland Restoration

Nils L. Langanke, Michael H. Grunenberg and Uwe Latacz-Lohmann

No 397892, 100th Annual Conference, March 23-25, 2026, Wadham College, University of Oxford, Oxford, UK from Agricultural Economics Society (AES)

Abstract: This paper investigates how the design of an agglomeration bonus influences farmers’ participation in a stylised peatland restoration scheme. Results from a discrete choice experiment with 110 farmers in Germany indicate that the bonus has only limited influence compared to land-use restrictions. In the mixed logit and latent class estimations the bonus is statistically insignificant and mostly ignored in the decision-making process. Only when preferences are adjusted for attribute non-attendance does the bonus enhance willingness to participate and the scheme’s cost-effectiveness. Overall, voluntary schemes appear insufficient for ambitious peatland restoration goals, suggesting a need to complement incentives with regulatory measures.

Keywords: Institutional; and; Behavioral; Economics (search for similar items in EconPapers)
Pages: 29
Date: 2026-03
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aes026:397892

DOI: 10.22004/ag.econ.397892

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