Nudging and the Design of Agro-Environmental Measures An analysis and assessment of nudges with potential applications to support agro-environmental measures in Saxony, Germany

The paper investigates the suitability of the nudging approach for the design of policy instruments in agri-environmental policy using exemplary measures from Saxony, Germany. A systematic literature review yielded 26 case studies of nudges from the field of agriculture or forestry with a focus on nature conservation and environmental protection. These show a potential to improve the effectiveness and efficiency of agri-environmental policy measures through the use of behavioural insights in the design of interventions. The results of interviews with experts from science, administration and agricultural practice confirm that nudges in the field of agri-environmental policy have rather limited effectiveness given the dominance of regulatory and financial support instruments, but can nevertheless be an efficient option to complement the policy mix due to the low costs involved. Possible concerns regarding the legitimacy and fundamental rights compatibility of nudges can be addressed by a policy design that ensures, among other things, transparency and proportionality of the intervention. A discussion of possible nudges to support five selected agri-environmental measures in Saxony shows that here the "Betriebsplan Natur" ("company plan nature") program already combines nudging elements such as personal advice and farm plaques in an effective way. Comparative information on the willingness of professional colleagues to participate, self-commitments on group level or default settings in the agricultural subsidy application are also possible nudges to increase participation in agri-environmental measures. Since the design of effective nudges is very issue-and context-dependent, scientifically accompanied pilot projects are an important option to expand the instrument mix in agro-environmental policy.