Nudges, Social Norms, and Permanence in Agri-environmental Schemes

Abstract

The permanence of land management practices adopted under agri-environmental schemes (AESs) is often questioned. This paper investigates the drivers of farmers’ decisions as to whether to maintain “proenvironment” 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 nonpecuniary motivations drive farmers’ decisions, which are also significantly influenced by information about a social norm. Therefore “nudging” farmers, by conveying information to them on other farmers’ proenvironmental practices, appears to be a means of maintaining the long-run benefits of AESs. <i>(JEL Q18, Q28)</i>