Nudging and subsidising farmers to foster smart water meter adoption

Abstract We use a discrete choice experiment with treatments to test if voluntary adoption of smart water meters by French farmers can be fostered by (i) a collective conditional subsidy offered to farmers who adopt a smart meter only if the rate of adoption in their geographic area is sufficiently...

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Bibliographic Details
Published in:European review of agricultural economics 2023-01, Vol.50 (3), p.1178-1226
Main Authors: Ouvrard, B, Préget, R, Reynaud, A, Tuffery, L
Format: Article
Language:English
Subjects:
Economics and Finance
Humanities and Social Sciences
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Summary:Abstract We use a discrete choice experiment with treatments to test if voluntary adoption of smart water meters by French farmers can be fostered by (i) a collective conditional subsidy offered to farmers who adopt a smart meter only if the rate of adoption in their geographic area is sufficiently high and (ii) informational nudges. Using a sample of 1,272 farmers, we find contrasted results regarding our nudges, but we show that a conditional subsidy is an effective tool to foster adoption of smart meters. Interestingly, the willingness to pay for the conditional subsidy is equal to the subsidy amount and independent of the collective adoption threshold.
ISSN:0165-1587
1464-3618
DOI:10.1093/erae/jbad013