Enhancing spatial coordination in payment for ecosystem services schemes with non-pecuniary preferences

The environmental benefits from Payment for Ecosystem Services (PES) schemes can often be enhanced if private land managers are induced to enrol in a spatially coordinated manner. One incentive mechanism which has been proposed achieve such spatial coordination is the agglomeration bonus, two-part payment scheme offers pecuniary (financial) reward decisions that lead greater of enrolled land. However, farmers respond range motives when deciding whether participate schemes, including non-pecuniary as concern environment or social comparisons. This study implements de-contextualised laboratory experiment test effectiveness bonus explicitly incorporated into decision-making environment. We capture intrinsic preferences public good dimension improvement through real donation charities and examine relative impact group-ranking nudge. experimental results show does indeed improve participation accounted for, but its performance not by