Abstract
Monetary (dis)incentives generally constitute the cornerstone of agri-environmental policies, in order to encourage individuals to adopt (reduce) socially (un)desirable behaviors. Nevertheless, in a context of limited financial resources, the effectiveness of these policies is increasingly questioned. Using insights from behavioral economics, we show that it is possible to improve the effectiveness of agri-environmental measures by taking into account behavioral biases in their design and implementation. We focus our attention on loss aversion, crowding-out effects, positional concerns, social norms, and the timing and origin of incentives.