IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-01148581.html
   My bibliography  Save this paper

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

Author

Listed:
  • Laure Kuhfuss

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, UM1 - Université Montpellier 1)

  • Raphaële Préget

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

  • Sophie Thoyer

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

  • Nick Hanley

    (University of St Andrews [Scotland])

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.

Suggested Citation

  • Laure Kuhfuss & Raphaële Préget & Sophie Thoyer & Nick Hanley, 2015. "Nudging farmers to sign agri-environmental contracts: the effects of a collective bonus," Working Papers hal-01148581, HAL.
    • Handle: RePEc:hal:wpaper:hal-01148581
    Note: View the original document on HAL open archive server: https://hal.science/hal-01148581
    as

    Download full text from publisher

    File URL: https://hal.science/hal-01148581/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Esther Duflo & Michael Kremer & Jonathan Robinson, 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 101(6), pages 2350-2390, October.
    2. Laure Kuhfuss & Florence Jacquet & Raphaële Preget & Sophie Thoyer, 2012. "Le dispositif des MAEt pour l’enjeu eau : une fausse bonne idée ?," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 93(4), pages 395-422.
    3. Kuhfuss, Laure & Preget, Raphaële & Thoyer, Sophie, 2014. "Préférences individuelles et incitations collectives : quels contrats agroenvironnementaux pour la réduction des herbicides par les viticulteurs ?," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 95(01), pages 111-143, March.
    4. Czajkowski, Mikolaj & Hanley, Nicholas & Nyborg, Karine, 2014. "Social norms, morals and self-interest as determinants of pro-environment behaviour," Stirling Economics Discussion Papers 2014-06, University of Stirling, Division of Economics.
    5. Wanhong Yang & Madhu Khanna & Richard Farnsworth, 2005. "Effectiveness of Conservation Programs in Illinois and Gains from Targeting," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1248-1255.
    6. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-362, March.
    7. Jean Tirole & Roland Bénabou, 2006. "Incentives and Prosocial Behavior," American Economic Review, American Economic Association, vol. 96(5), pages 1652-1678, December.
    8. Maria Espinosa‐Goded & Jesús Barreiro‐Hurlé & Eric Ruto, 2010. "What Do Farmers Want From Agri‐Environmental Scheme Design? A Choice Experiment Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 259-273, June.
    9. Nick Hanley & Susana Mourato & Robert E. Wright, 2001. "Choice Modelling Approaches: A Superior Alternative for Environmental Valuatioin?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 435-462, July.
    10. repec:bla:jecsur:v:15:y:2001:i:3:p:435-62 is not listed on IDEAS
    11. Simanti Banerjee & Frans P. de Vries & Nick Hanley & Daan P. van Soest, 2014. "The Impact of Information Provision on Agglomeration Bonus Performance: An Experimental Study on Local Networks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(4), pages 1009-1029.
    12. Brekke, Kjell Arne & Kverndokk, Snorre & Nyborg, Karine, 2003. "An economic model of moral motivation," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 1967-1983, September.
    13. Philippe Le Coent & Raphaële Préget & Sophie Thoyer, 2014. "Why pay for nothing? An experiment on a conditional subsidy scheme in a threshold public good game," Economics Bulletin, AccessEcon, vol. 34(3), pages 1976-1989.
    14. François Bourguignon & Martin Fournier & Marc Gurgand, 2007. "Selection Bias Corrections Based On The Multinomial Logit Model: Monte Carlo Comparisons," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 174-205, February.
    15. Parkhurst, Gregory M. & Shogren, Jason F. & Bastian, Chris & Kivi, Paul & Donner, Jennifer & Smith, Rodney B. W., 2002. "Agglomeration bonus: an incentive mechanism to reunite fragmented habitat for biodiversity conservation," Ecological Economics, Elsevier, vol. 41(2), pages 305-328, May.
    16. Magnus Söderberg & David Barton, 2014. "Marginal WTP and Distance Decay: The Role of ‘Protest’ and ‘True Zero’ Responses in the Economic Valuation of Recreational Water Quality," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(3), pages 389-405, November.
    17. Broch, Stine Wamberg & Strange, Niels & Jacobsen, Jette B. & Wilson, Kerrie A., 2013. "Farmers' willingness to provide ecosystem services and effects of their spatial distribution," Ecological Economics, Elsevier, vol. 92(C), pages 78-86.
    18. Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 841-877, October.
    19. Ferraro, Paul J., 2008. "Asymmetric information and contract design for payments for environmental services," Ecological Economics, Elsevier, vol. 65(4), pages 810-821, May.
    20. Jeremy Franks, 2011. "The collective provision of environmental goods: a discussion of contractual issues," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(5), pages 637-660.
    21. Isabel Vanslembrouck & Guido Van Huylenbroeck & Wim Verbeke, 2002. "Determinants of the Willingness of Belgian Farmers to Participate in Agri‐environmental Measures," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 489-511, November.
    22. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    23. Cook, Douglas O. & Kieschnick, Robert & McCullough, B.D., 2008. "Regression analysis of proportions in finance with self selection," Journal of Empirical Finance, Elsevier, vol. 15(5), pages 860-867, December.
    24. Barrio, Melina & Loureiro, Maria L., 2010. "The Impact of Protest Responses in Choice Experiments," Sustainable Development Papers 98050, Fondazione Eni Enrico Mattei (FEEM).
    25. Rachel Croson & Nicolas Treich, 2014. "Behavioral Environmental Economics: Promises and Challenges," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(3), pages 335-351, July.
    26. repec:sss:wpaper:201403 is not listed on IDEAS
    27. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
    28. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    29. Eric Ruto & Guy Garrod, 2009. "Investigating farmers' preferences for the design of agri-environment schemes: a choice experiment approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 631-647.
    30. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    31. Jack Peerlings & Nico Polman, 2009. "Farm choice between agri-environmental contracts in the European Union," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 593-612.
    32. Videras, Julio & Owen, Ann L. & Conover, Emily & Wu, Stephen, 2012. "The influence of social relationships on pro-environment behaviors," Journal of Environmental Economics and Management, Elsevier, vol. 63(1), pages 35-50.
    33. Hung-Hao Chang & Richard N. Boisvert, 2009. "Distinguishing between Whole-Farm vs. Partial-Farm Participation in the Conservation Reserve Program," Land Economics, University of Wisconsin Press, vol. 85(1), pages 144-161.
    34. Giovanopoulou, Eirini & Nastis, Stefanos A. & Papanagiotou, Evagelos, 2011. "Modeling farmer participation in agri-environmental nitrate pollution reducing schemes," Ecological Economics, Elsevier, vol. 70(11), pages 2175-2180, September.
    35. Banerjee, Simanti & Shortle, James S. & Kwasnica, Anthony M., 2009. "The Agglomeration Vickrey Auction for the promotion of spatially contiguous habitat management: Theoretical foundations and numerical illustrations," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49337, Agricultural and Applied Economics Association.
    36. Shan Ma & Scott M. Swinton & Frank Lupi & Christina Jolejole-Foreman, 2012. "Farmers’ Willingness to Participate in Payment-for-Environmental-Services Programmes," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 604-626, September.
    37. Pierre Dupraz & Karine Latouche & Nadine Turpin, 2009. "Threshold effect and co-ordination of agri-environmental efforts," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 613-630.
    38. Geraldine Ducos & Pierre Dupraz & Francois Bonnieux, 2009. "Agri-environment contract adoption under fixed and variable compliance costs," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 669-687.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. D'Alberto, R. & Targetti, S. & Schaller, L. & Bartolini, F. & Eichhorn, T. & Haltia, E. & Harmanny, K. & Le Gloux, F. & Nikolov, D. & Runge, T. & Vergamini, D. & Viaggi, D., 2024. "A European perspective on acceptability of innovative agri-environment-climate contract solutions," Land Use Policy, Elsevier, vol. 141(C).
    2. Laure Kuhfuss & Raphaële Préget & Sophie Thoyer & Nick Hanley & Philippe Le Coent & Mathieu Désolé, 2016. "Nudges, Social Norms, and Permanence in Agri-environmental Schemes," Land Economics, University of Wisconsin Press, vol. 92(4), pages 641-655.
    3. Villamayor-Tomas, Sergio & Sagebiel, Julian & Olschewski, Roland, 2019. "Bringing the neighbors in: A choice experiment on the influence of coordination and social norms on farmers’ willingness to accept agro-environmental schemes across Europe," Land Use Policy, Elsevier, vol. 84(C), pages 200-215.
    4. Bourceret, Amélie & Amblard, Laurence & Mathias, Jean-Denis, 2022. "Adapting the governance of social–ecological systems to behavioural dynamics: An agent-based model for water quality management using the theory of planned behaviour," Ecological Economics, Elsevier, vol. 194(C).
    5. Massfeller, Anna & Meraner, Manuela & Hüttel, Silke & Uehleke, Reinhard, 2021. "Farmers' Acceptance of Result-Based Agri-Environmental Schemes - Insights from a Case Study in North Rhine-Westphalia," 2021 Conference, August 17-31, 2021, Virtual 315148, International Association of Agricultural Economists.
    6. Schreiner, Julia Anette, 2018. "Saving the breeds: German Farmers’ preferences for Endangered Dairy Breed conservation programs," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276866, International European Forum on System Dynamics and Innovation in Food Networks.
    7. Uwe Latacz-Lohmann & Gunnar Breustedt, 2019. "Using choice experiments to improve the design of agri-environmental schemes," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(3), pages 495-528.
    8. Nguyen, Chi & Latacz-Lohmann, Uwe & Hanley, Nick & Schilizzi, Steven & Iftekhar, Sayed, 2022. "Spatial Coordination Incentives for landscape-scale environmental management: A systematic review," Land Use Policy, Elsevier, vol. 114(C).
    9. Villanueva, Anastasio J. & Glenk, Klaus & Rodriguez-Entrena, M., 2016. "Serial non-participation and ecosystem services providers’ preferences towards incentive-based schemes," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236348, Agricultural Economics Society.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(4), pages 609-636.
    2. Calvet, Coralie & Le Coent, Philippe & Napoleone, Claude & Quétier, Fabien, 2019. "Challenges of achieving biodiversity offset outcomes through agri-environmental schemes: Evidence from an empirical study in Southern France," Ecological Economics, Elsevier, vol. 163(C), pages 113-125.
    3. Le Coent, Philippe & Préget, Raphaële & Thoyer, Sophie, 2017. "Compensating Environmental Losses Versus Creating Environmental Gains: Implications for Biodiversity Offsets," Ecological Economics, Elsevier, vol. 142(C), pages 120-129.
    4. Breustedt, Gunnar & Schulz, Norbert & Latacz-Lohmann, Uwe, 2013. "Kalibrierung von Vertragsnaturschutzprogrammen mittels eines zweistufigen Discrete-Choice-Experimentes," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 62(04), pages 1-17, November.
    5. Uwe Latacz-Lohmann & Gunnar Breustedt, 2019. "Using choice experiments to improve the design of agri-environmental schemes," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(3), pages 495-528.
    6. Breustedt, Gunnar & Schulz, Norbert & Latacz-Lohmann, Uwe, 2013. "Kalibrierung von Vertragsnaturschutzprogrammen mittels eines zweistufigen Discrete-Choice-Experimentes," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(4).
    7. Kuhfuss, Laure & Jacquet, Florence, 2012. "Le dispositif des MAEt pour l’enjeu eau : une fausse bonne idée ?," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 93(4).
    8. Philippe Le Coent & Coralie Calvet, 2016. "Challenges of achieving biodiversity offsetting through agri-environmental schemes: evidence from an empirical study," Working Papers 16-10, LAMETA, Universtiy of Montpellier.
    9. Christensen, Tove & Pedersen, Anders Branth & Nielsen, Helle Oersted & Mørkbak, Morten Raun & Hasler, Berit & Denver, Sigrid, 2011. "Determinants of farmers' willingness to participate in subsidy schemes for pesticide-free buffer zones--A choice experiment study," Ecological Economics, Elsevier, vol. 70(8), pages 1558-1564, June.
    10. Christensen, Tove & Pedersen, Anders Branth & Nielsen, Helle Orstead & Morkbak, Morten Raun & Hasler, Berit & Denver, Sigrid, 2010. "How to increase the effectiveness of agri-environmental subsidy schemes through knowledge of farmer perceptions-a choice experiment on pesticide free buffer zones," 120th Seminar, September 2-4, 2010, Chania, Crete 109316, European Association of Agricultural Economists.
    11. Czajkowski, Mikołaj & Zagórska, Katarzyna & Letki, Natalia & Tryjanowski, Piotr & Wąs, Adam, 2021. "Drivers of farmers’ willingness to adopt extensive farming practices in a globally important bird area," Land Use Policy, Elsevier, vol. 107(C).
    12. Caroline Roussy & Aude Ridier & Karim Chaïb, 2014. "Adoption d’innovations par les agriculteurs : rôle des perceptions et des préférences," Post-Print hal-01123427, HAL.
    13. Partha Dasgupta & Dale Southerton & Alistair Ulph & David Ulph, 2016. "Consumer Behaviour with Environmental and Social Externalities: Implications for Analysis and Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(1), pages 191-226, September.
    14. Philippe Coent, 2023. "Payment for environmental services related to aquifers: a review of specific issues and existing programmes," Review of Agricultural, Food and Environmental Studies, Springer, vol. 104(3), pages 273-310, December.
    15. Bougherara, Douadia & Lapierre, Margaux & Préget, Raphaële & Sauquet, Alexandre, 2021. "Do farmers prefer increasing, decreasing, or stable payments in Agri-environmental schemes?," Ecological Economics, Elsevier, vol. 183(C).
    16. Christoph Schulze & Katarzyna Zagórska & Kati Häfner & Olimpia Markiewicz & Mikołaj Czajkowski & Bettina Matzdorf, 2024. "Using farmers' ex ante preferences to design agri‐environmental contracts: A systematic review," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(1), pages 44-83, February.
    17. Marie Asma Ben-Othmen & Mariia Ostapchuk, 2023. "How diverse are farmers’ preferences for large-scale grassland ecological restoration? Evidence from a discrete choice experiment," Review of Agricultural, Food and Environmental Studies, Springer, vol. 104(3), pages 341-375, December.
    18. Vedel, Suzanne Elizabeth & Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2015. "Forest owners' willingness to accept contracts for ecosystem service provision is sensitive to additionality," Ecological Economics, Elsevier, vol. 113(C), pages 15-24.
    19. Sergei Schaub & Jaboury Ghazoul & Robert Huber & Wei Zhang & Adelaide Sander & Charles Rees & Simanti Banerjee & Robert Finger, 2023. "The role of behavioural factors and opportunity costs in farmers' participation in voluntary agri‐environmental schemes: A systematic review," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 617-660, September.
    20. Demarchi, Gabriela & Subervie, Julie & Leite, Fernando Palha & Laclau, Jean-Paul, 2021. "Farmers' preferences for water-saving strategies in Brazilian eucalypt plantations," Forest Policy and Economics, Elsevier, vol. 128(C).

    More about this item

    Keywords

    choice experiment; behaviour; collective incentive; payment for environmental services; social norm; agri-environmental schemes;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-01148581. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.