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Environmental identity economics: an application to farmers’ pro-environmental investment behaviour

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  • Kahsay Haile Zemo
  • Mette Termansen

Abstract

This study proposes an environmental identity economics theory that can improve our understanding of pro-environmental behaviour. We test the potential of the theory by analysing farmers’ decisions to invest in renewable energy production using a hybrid choice model. Our findings illustrate that farmers with a strong environmental identity require less financial incentive to invest. Furthermore, lower compensation is found to be sufficient to induce farmers with a strong environmental identity to commit to more binding investment contracts. Our findings stress the need for differentiated designs of agri-environmental programmes and mechanisms that enhance farmers’ environmental identity.

Suggested Citation

  • Kahsay Haile Zemo & Mette Termansen, 2022. "Environmental identity economics: an application to farmers’ pro-environmental investment behaviour," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(2), pages 331-358.
    • Handle: RePEc:oup:erevae:v:49:y:2022:i:2:p:331-358.
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    File URL: http://hdl.handle.net/10.1093/erae/jbab049
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    Citations

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    Cited by:

    1. Lin Meng & Wentao Si, 2022. "Pro-Environmental Behavior: Examining the Role of Ecological Value Cognition, Environmental Attitude, and Place Attachment among Rural Farmers in China," IJERPH, MDPI, vol. 19(24), pages 1-24, December.
    2. Douadia Bougherara & Lea Gosset & Raphaële Préget & Sophie Thoyer, 2023. "Innovativeness, innovation adoption and priming: Nudging farmers in a large-scale randomized experiment in France," Post-Print hal-04227775, HAL.
    3. Muhamad Subhi Apriantoro & Rizki Dwi Putra Rosadi & Arminda Cahya Ramdhani & Ninik Andriyani, 2024. "Shaping the Future of Environmental Economics: A Bibliometric Review of Current Trends and Future Directions," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 549-559, May.
    4. Elisa Giampietri & Samuele Trestini, 2023. "Pro-Environmental Viticulture: Status Quo and Perspectives from Prosecco Winegrowers in Italy," Sustainability, MDPI, vol. 15(2), pages 1-12, January.
    5. Tsakiridis, Andreas & O’Donoghue, Cathal & Ryan, Mary & Cullen, Paula & Ó hUallacháin, Daire & Sheridan, Helen & Stout, Jane, 2022. "Examining the relationship between farmer participation in an agri-environment scheme and the quantity and quality of semi-natural habitats on Irish farms," Land Use Policy, Elsevier, vol. 120(C).
    6. Chai, Yuan & J. Pannell, David & G. Pardey, Philip, 2023. "Nudging farmers to reduce water pollution from nitrogen fertilizer," Food Policy, Elsevier, vol. 120(C).
    7. Caterina Contini & Fabio Boncinelli & Giovanna Piracci & Gabriele Scozzafava & Leonardo Casini, 2023. "Can blockchain technology strengthen consumer preferences for credence attributes?," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-17, December.

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