Evaluating Incentive Mechanisms to Promote Sustainability Program Adoption

Abstract

Increasing consumer demand for sustainably-sourced products has created a need to benchmark sustainability at the field level. To address this issue, some companies are offering incentives to producers, but are still lacking participation. This study estimated producers’ willingness to accept for participating in sustainability programs and implementing sustainable practices at the field level using a double-bounded dichotomous-choice framework. The results revealed preferences for longer contracts in length of time, industry as the verification party, supplemental benefits that yield an economic incentive, and a per-bale payment. This project will give new insights to the value and importance of documenting, verification, and traceability throughout the supply chain.