A Goal-Frame Approach on the Adoption of Organic Farming Practices

29 Pages Posted: 23 Dec 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: December 12, 2022

Abstract

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

Diakoulakis, Giorgos N. and Kampas, Athanasios, A Goal-Frame Approach on the Adoption of Organic Farming Practices (December 12, 2022). Available at SSRN: https://ssrn.com/abstract=4300429 or http://dx.doi.org/10.2139/ssrn.4300429

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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