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Nudging farmers to enrol land into agri-environmental schemes: the role of a collective bonus

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  • Laure Kuhfuss
  • Raphaële Préget
  • Sophie Thoyer
  • Nick Hanley

Abstract

This article 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 in addition to the usual AES payment if a given threshold is reached in terms of aggregate farmer participation. Using a choice experiment, we estimate the preferences of winegrowers in the South of France for such a bonus. We show that it contributes to increased expectations of farmers on others' participation, therefore shifting a pro-environmental social norm and favouring the adoption of less pesticide-intensive farming practices.

Suggested Citation

  • Laure Kuhfuss & Raphaële Préget & Sophie Thoyer & Nick Hanley, 2016. "Nudging farmers to enrol land into agri-environmental schemes: the role of a collective bonus," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 43(4), pages 609-636.
  • Handle: RePEc:oup:erevae:v:43:y:2016:i:4:p:609-636.
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    File URL: http://hdl.handle.net/10.1093/erae/jbv031
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