A Goal-Frame Approach on the Adoption of Organic Farming Practices
29 Pages Posted: 23 Dec 2022
Date Written: December 12, 2022
Building around the Goal-Framing Theory, this article explores farmer's adoption choices of organic farming practices under the presence of land subsidies and price premiums. The main results are: (i) even though land subsidies induce organic production, they reduce the fraction of organic farming practices been adopted; (ii) price premiums can induce both organic farming and the adoption of a higher fraction of organic farming practices, provided that they are high enough; (iii) land subsidies and price premiums are likely to induce over-compliance if the adoption target is relatively low; (iv) it is more likely to observe over-compliance among farmers who in the absence of financial incentives exhibit normative goal preferences; (v) land subsidies should be accompanied by additional interventions that foster normative behaviour (e.g., educational programs, environmental campaigns, etc.). Such a necessity is reduced once price premiums coexist. Finally, a payment scheme is proposed, as well.
Keywords: organic farming, farmers' behaviour, goal-driven choices, land subsidies, price premiums
JEL Classification: D91, Q18, Q58
Suggested Citation: Suggested Citation