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Nassila, Lesly Neema, 2022. To what extent are Hungarian farmers willing to cooperate on agri-environmental schemes? : experimental evidence from a public goods game. Second cycle, A2E. Uppsala: SLU, Dept. of Economics



European Union agri-environmental measures fail to deliver expected benefits despite playing a
central role in mitigating the negative effects of agriculture on biodiversity and the environment.
Implementing agri-environmental contracts following a landscape-scale rather than an individual�farm level approach could potentially contribute to improving their environmental performance. We
conducted a public goods game experiment with 406 Hungarian farmers to investigate their
willingness to cooperate as a pre-requisite for the successful implementation of novel agri�environmental contracts. Participants were divided into treatments to analyze how variations in three
characteristics of collective contract design (namely group size, threshold, and endowment) can
impact farmers’ attitudes towards collaboration. The results show that unequal endowments have a
large statistically significant negative effect on farmers’ average contributions. Variations in group
size and threshold levels have a statistically insignificant effect on contribution levels. We conclude
that Hungarian farmers’ propensity to cooperate is higher than expected considering their past
experiences with collectivization and that strong economic heterogeneity can significantly impede
their collaboration levels.

Main title:To what extent are Hungarian farmers willing to cooperate on agri-environmental schemes?
Subtitle:experimental evidence from a public goods game
Authors:Nassila, Lesly Neema
Supervisor:Rommel, Jens
Examiner:Hart, Robert
Series:Examensarbete / SLU, Institutionen för ekonomi
Volume/Sequential designation:UNSPECIFIED
Year of Publication:2022
Level and depth descriptor:Second cycle, A2E
Student's programme affiliation:NM030 Agricultural, Food and Environmental Policy Analysis (AFEPA) - Master's Programme, 120.0hp
Supervising department:(NL, NJ) > Dept. of Economics
Keywords:public goods game, experimental economics, Hungary, collaboration, collective agri-environmental contracts
Permanent URL:
Subject. Use of subject categories until 2023-04-30.:Agricultural economics and policies
Deposited On:30 Nov 2022 12:08
Metadata Last Modified:01 Dec 2022 02:00

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