How integrating nature-based solutions into farmers' strategies can play on inefficient use of polluting inputs

Jérôme Faure and Esther Devilliers
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Jérôme Faure: CEBC - Centre d'Études Biologiques de Chizé - UMR 7372 - ULR - La Rochelle Université - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Esther Devilliers: BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: This article examines how integrating nature-based solutions into agricultural strategies can address the inefficient use of polluting technological solutions. A theoretical microeconomic model, based on subjective expected utility, is developed and empirically tested on rapeseed cultivation. The study highlights the overuse of polluting technological solutions and the underuse of nature-based solutions, driven by inaccurate perceptions of input productivity. The article provides recommendations for public policies aimed at correcting these perceptions and optimizing the use of inputs by balancing the cost-effectiveness of interventions for both nature-based and polluting technological solutions. The findings suggest that policies focused on correcting misperceptions about polluting technological solutions are more effective than those focused on nature-based solutions.

Keywords: Input efficiency; Perception; Ecosystem service; Nature-based solutions; Subjective expected utility (search for similar items in EconPapers)
Date: 2023-08-29
New Economics Papers: this item is included in nep-agr, nep-eff, nep-env and nep-upt
Note: View the original document on HAL open archive server: https://hal.science/hal-04869177v1
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Published in European Association of Agricultural Economists Congress, European Association of Agricultural Economists, Aug 2023, Rennes, France. 18 p

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