Nudges, social norms and permanence in agri-environmental schemes

Abstract

The permanence of land management practices adopted under Agri-environmental schemes (AES) is often questioned. This paper investigates the drivers of farmers’ decision as to whether to maintain “pro-environment” practices beyond the duration of a contract, and in particular the effect of social norms. Our results, based on the stated intentions of 395 French farmers, show that both pecuniary and non-pecuniary motivations drive farmers’ decision, which is also significantly influenced by information about a social norm. Therefore “nudging” farmers, by conveying information to them on other farmers’ pro-environmental practices, appears as a means of maintaining the long-run benefits of AES.