A Goal-Framing Approach to Green Payments’ Efficiency When Vertical Integration Is an Option

AUA Working Paper Series No. 2020 - 1

29 Pages Posted: 8 Aug 2022

See all articles by Giorgos N. Diakoulakis

Giorgos N. Diakoulakis

Agricultural Economics Research Institute, ELGO-DIMITRA; Agricultural University of Athens - Department of Agricultural Economics and Rural Development

Athanasios Kampas

Agricultural University of Athens - Department of Agricultural Economics and Rural Development

Date Written: 2020

Abstract

This article explores farmer’s decisions regarding the expansion of organic farming through intensive input use and the degree of in-house organic fertilizer production. Using a theoretical synthesis of two strands of the scholarly literature, namely pro-environmental norms and the goal-framing theory, the contribution of this article to the current literature is: (i) it redefines the concept of the crowding effects, which encompasses both changes in environmental preferences and in normative objectives; (ii) it points that the impact of a green payment on vertical integration depends on both the relative (i.e. the direction) and the absolute (i.e. the magnitude) size of the crowding effect being expected; (iii) it states that a trade-off between input use and vertical integration does always exist once a land subsidy is implemented, but not necessarily if a price premium is offered instead.

Keywords: personal and social norms, crowding theory, goal-framing theory, green payments vertical integration

JEL Classification: D91, Q18, Q58

Suggested Citation

Diakoulakis, Giorgos N. and Kampas, Athanasios, A Goal-Framing Approach to Green Payments’ Efficiency When Vertical Integration Is an Option (2020). AUA Working Paper Series No. 2020 - 1, Available at SSRN: https://ssrn.com/abstract=4164922 or http://dx.doi.org/10.2139/ssrn.4164922

Giorgos N. Diakoulakis (Contact Author)

Agricultural Economics Research Institute, ELGO-DIMITRA ( email )

Aristeidi Kourtidou 56-58
Athens, 11145
Greece

Agricultural University of Athens - Department of Agricultural Economics and Rural Development ( email )

Iera Odos 75
Athens, Attica
Greece

Athanasios Kampas

Agricultural University of Athens - Department of Agricultural Economics and Rural Development ( email )

Athens
Greece

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