Factors Influencing Farmers’ WTA Innovative Carbon Farming Contracts For Environmental Improvements

Carbon Farming (CF) practices represent a promising pathway to enhance carbon storage in vulnerable agricultural areas. This study addresses the knowledge gap in the design and acceptability of Agri-Environmental and Climate Schemes (AECS) by examining how tailored CF contracts can promote sustainable practices. Focusing on Liguria, Italy, it explores farmers’ preferences for hypothetical CF measures and the factors shaping their willingness to accept. A Discrete Choice Experiment with 93 farmers, analyzed through a Conditional Logit Model, shows that farmers prioritize individual over collective participation and favor action-based contracts, followed by hybrid and results-based schemes, with higher compensation demanded for the latter. Followed by a Latent Class Model, two classes were identified; the first favors individual engagement with higher compensation, while the second places greater weight on prescription levels. Findings underline the need for AECS that reflect diverse preferences, integrate results-based elements with collective action, and ensure adequate compensation for support.