Agri-environmental schemes are the main policy instrument currently available in the EU to promoteenvironmentally friendly farming practices. Nevertheless, the adoption rate of these measures is stilllimited. This paper develops a theoretical framework to explain farmer sign-up decision and...

Current EU legislation states that premiums for agri-environmental schemes must be calculated based on forgone profit and additional costs. This approach has been implemented for the last decades without much success in farmer uptake, a situation that might even worsen as the 20% additional...