Advancing Agri-Environmental Policy with Behavioral and Experimental Economics: Insights, Innovations, and Future Directions

In recent years, behavioral and experimental economics have increasingly shaped agri-environmental research by revealing how farmers navigate complex decisions. This article reviews key developments in three areas: behavioral insights into farmers’ social, temporal, and risk preferences and identities, norms, and motivations; experimental methods for assessing behavior and policy impacts; and methodological advances enhancing scientific rigor. We highlight contributions to more behaviorally informed agri-environmental policies, including nudges, participatory approaches, and innovative schemes. Looking forward, priorities include large-scale collaborative studies, stronger stakeholder involvement, and integrating behavioral evidence into policymaking, addressing challenges such as farmer fatigue, to design adaptive, effective, and legitimate policies.