Greening the common agricultural policy: a behavioural perspective and lab-in-the-field experiment in Germany

Thomas, Fabian; Midler, Estelle; Lefebvre, Marianne; Engel, Stefanie

doi:10.1093/erae/jbz014

Cited by 33 publications

(37 citation statements)

References 62 publications

(58 reference statements)

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“…Howley and Ocean, 2021;Kuhfuss et al, 2016b), laboratory experiments (e.g. Buchholz et al, 2016;Dörschner and Musshoff, 2015;Ferré et al, 2018;Holst et al, 2014;Peth et al, 2018;Thomas et al, 2019), and to a lesser extent randomised controlled trials (e.g. Wallander et al, 2017) as a way to test the effectiveness of behavioural interventions (or nudges ).…”

Section: Introductionmentioning

confidence: 99%

Using Choice Framing to Improve the Design of Agricultural Subsidy Schemes

Ocean

Howley

2021

Land Economics

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Existing agri-environment schemes have suffered from poor uptake and high burden. This article leverages behavioural economics to test choice framing in three hypothetical policy scenarios. Using a randomised survey experiment on UK farmers, we find that frames based on mental accounting and loss aversion can be used to influence agricultural policyrelated decision making. Our findings highlight the following considerations for the design of future policy: (i) whether application costs are integrated within or segregated from a subsidy matters; (ii) the labelling of agricultural schemes may affect expenditure allocation; and (iii) reference points can affect the evaluation of new scheme alternatives.

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Section: Introductionmentioning

confidence: 99%

Using Choice Framing to Improve the Design of Agricultural Subsidy Schemes

Ocean

Howley

2021

Land Economics

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“…Consumers' willingness to pay While one may assume from the evidence above that informing consumers about the use of beneficial insects instead of synthetic insecticides is a promising marketing strategy, the exact information provided to consumers can be pivotal for its success. Findings on new technology suggest that the framing of information about the product can substantially affect perceptions, attitudes, and willingness to pay (WTP) (Britwum and Yiannaka, 2019;Thomas et al, 2019). 1 Scholars use the term "message framing" to describe the effect when some element of presented information, logically unrelated to the content of the information, affects the impact of that information on beliefs or behaviors (Kahan et al, 2009).…”

Section: Introductionmentioning

confidence: 99%

Consumers’ willingness to pay for plants protected by beneficial insects—Evidence from two stated-choice experiments with different subject pools

Lehberger¹,

Grüner²

2020

Preprint

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1Consumers' willingness to pay Consumers' willingness to pay for plants protected by beneficial insects-Evidence from two stated-choice experiments with different subject pools AbstractWe investigate consumers' willingness to pay for plants protected by beneficial insects and those protected by pesticides, respectively, as well as the influence of message framing on willingness to pay. We use basil, heather, and orchids as experimental objects and find evidence from two experiments that consumers prefer plants protected by beneficial insects. Moreover, we find that message framing affects consumers' willingness to pay, where gain framing produces greater overall willingness to pay. To check for the robustness of our results, we implemented instruments to mitigate concerns for social desirability and hypothetical bias, finding that our results are robust in terms of our key findings. This is the first comprehensive experimental study specifically on consumer's willingness to pay for plants protected by beneficial insects. Our findings are also valuable for practitioners, as the use of beneficial insects in under-glass production systems is already common. Following our results, this information could be successfully used for marketing purposes.

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“…It could illustrate that some farmers are still not convinced about the need to change practices since they believe conventional practices are not harmful. It could also be that participants perceive the payment instrument as an attempt by the administration to control individual decision (Thomas et al 2019). The participants with such beliefs are not willing to bear the extra cost and risk of more environmentfriendly practices in the experiment.…”

Section: Impact Of Individual Variablesmentioning

confidence: 99%

Adoption of Environment-Friendly Agricultural Practices with Background Risk: Experimental Evidence

Lefebvre¹,

Midler²,

Bontems³

2020

Environ Resource Econ

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Agriculture is one of the economic sectors most exposed to exogenous risks such as climate hazards and price volatility on agricultural markets. Agricultural policies targeting the adoption of environment-friendly but potentially risk-increasing practices cannot ignore this challenge. Farmers have indeed to decide if they take the foreground risk associated with the adoption of environmentfriendly practices, while simultaneously facing exogenous background risk beyond their control. Using a theoretical model and a public good experiment, we analyse the adoption of agri-environmental practices and the effect of agri-environmental subsidies in a context where risks are both foreground and background. While most of the literature on background risk focuses on its impact on individual decisions, we analyse the influence of background risk in a context of strategic uncertainty (contribution to a public good). The results highlight the potential synergies between greening the CAP and supporting risk management. We find that background risk discourages the adoption of green practices, although it affects all farmland independently from the farmer's choice of practices (environment friendly or conventional). An incentive payment per hectare of land farmed with green practices increases the adoption of risk-increasing practices but is significantly less effective in the presence of background risk.

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Greening the common agricultural policy: a behavioural perspective and lab-in-the-field experiment in Germany

Cited by 33 publications

References 62 publications

Using Choice Framing to Improve the Design of Agricultural Subsidy Schemes

Using Choice Framing to Improve the Design of Agricultural Subsidy Schemes

Consumers’ willingness to pay for plants protected by beneficial insects—Evidence from two stated-choice experiments with different subject pools

Adoption of Environment-Friendly Agricultural Practices with Background Risk: Experimental Evidence

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