Improving Spatial Coordination Rates under the Agglomeration Bonus Scheme: A Laboratory Experiment with a Pecuniary and a Non-Pecuniary Mechanism (NUDGE)
The Agglomeration Bonus is a Payment for Ecosystem Services scheme that focuses on achieving spatially-coordinated land use across neighboring, privately-owned agricultural properties. In this article, I use a laboratory experiment to examine the role of two mechanisms in incentivizing spatially coo...
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| Published in | American journal of agricultural economics Vol. 100; no. 1; pp. 172 - 197 |
|---|---|
| Main Author | |
| Format | Journal Article |
| Language | English |
| Published |
Malden
Oxford University Press
01.01.2018
Blackwell Publishing Ltd |
| Subjects | |
| Online Access | Get full text |
| ISSN | 0002-9092 1467-8276 |
| DOI | 10.1093/ajae/aax066 |
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| Abstract | The Agglomeration Bonus is a Payment for Ecosystem Services scheme that focuses on achieving spatially-coordinated land use across neighboring, privately-owned agricultural properties. In this article, I use a laboratory experiment to examine the role of two mechanisms in incentivizing spatially coordinated land uses under the Agglomeration Bonus scheme on a geographical landscape resembling a local circular network. The first mechanism is pecuniary in format and varies the payoffs associated with coordination, while the second is a non-pecuniary mechanism that varies the amount of information participants have about the land use choices of other participants, specifically of those from another community. The payoff variation is implemented as a within-subject treatment and the information treatment in a between-subject format. The results indicate that the coordination rates are higher if payments associated with coordination are higher. Also, having information about outcomes of the Agglomeration Bonus scheme from another community improves spatial coordination rates in both communities. |
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| AbstractList | The Agglomeration Bonus is a Payment for Ecosystem Services scheme that focuses on achieving spatially-coordinated land use across neighboring, privately-owned agricultural properties. In this article, I use a laboratory experiment to examine the role of two mechanisms in incentivizing spatially-coordinated land uses under the Agglomeration Bonus scheme on a geographical landscape resembling a local circular network. The first mechanism is pecuniary in format and varies the payoffs associated with coordination, while the second is a non-pecuniary mechanism that varies the amount of information participants have about the land use choices of other participants, specifically of those from another community. The payoff variation is implemented as a within-subject treatment and the information treatment in a between-subject format. The results indicate that the coordination rates are higher if payments associated with coordination are higher. Also, having information about outcomes of the Agglomeration Bonus scheme from another community improves spatial coordination rates in both communities. |
| Author | Banerjee, Simanti |
| Author_xml | – sequence: 1 givenname: Simanti surname: Banerjee fullname: Banerjee, Simanti |
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| ContentType | Journal Article |
| Copyright | Copyright © 2018 Agricultural and Applied Economics Association The Authors 2017. Published by Oxford University Press on behalf of the Agricultural and Applied Economics Association. All rights reserved. For Permissions, please email: journals.permissions@oup.com 2017 Copyright © 2018 by the Agricultural and Applied Economics Association, Inc. Agricultural and Applied Economics Association |
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| Keywords | social comparison theory local network game payoffs Coordination games information social norm ecosystem services nudge |
| Language | English |
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| Notes | This research has been funded by the University of Nebraska‐Lincoln. The author thanks the editor Timothy Beatty, and two anonymous referees whose comments have greatly improved this article. The author also thanks Hernan Bejarano, Timothy N. Cason, Nick Hanley, Lia Nogueira, Leah H. Palm‐Forster, James M. Walker, and Cory Walters, seminar attendees at the University of Delaware, and audiences at the Annual Heartland Environmental & Resource Economics Workshop, Northeastern Agricultural and Resource Economics Association (NAREA), and the Agricultural and Applied Economics Association (AAEA) Meetings for valuable comments and discussions. Finally, the author thanks Nadeeka Weerasekara for valuable research support. Any errors remain those of the author. ObjectType-Article-1 SourceType-Scholarly Journals-1 ObjectType-Feature-2 content type line 14 content type line 23 |
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| Snippet | The Agglomeration Bonus is a Payment for Ecosystem Services scheme that focuses on achieving spatially-coordinated land use across neighboring, privately-owned... The Agglomeration Bonus is a Payment for Ecosystem Services scheme that focuses on achieving spatially‐coordinated land use across neighboring, privately‐owned... |
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| SubjectTerms | Agglomeration Agricultural economics Agricultural land Community Coordination Coordination games Ecosystem services Ecosystems Format game payoffs information Laboratories laboratory experimentation Land use landscapes local network nudge Payments social comparison theory social norm |
| Title | Improving Spatial Coordination Rates under the Agglomeration Bonus Scheme: A Laboratory Experiment with a Pecuniary and a Non-Pecuniary Mechanism (NUDGE) |
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