Willingness to Pay for Crowdfunding Local Agricultural Climate Solutions

Abstract

The recent rise in climate concern among citizens worldwide is coinciding with a rising interest in agricultural climate solutions. The future scaling-up of these solutions, however, requires more knowledge about the mitigation potential, costs and financing options, including crowdfunding (CF). Our objective is to explore the driving factors behind the public’s willingness to pay for crowdfunded climate mitigation projects at the farm level. In this study, four mitigation options from the perspective of farmers were identified: solar panels on the barn roof, biogas from animal manure, drag hoses for improved manure dispersal, and the addition of biochar to soils. The study investigates the optimal characteristics of crowdfunding campaigns to finance such mitigation measures. The most influential factors on the respondents’ WTP is neither climate concern nor proximity, but instead the knowledge regarding CF, combined with how comprehensible and salient the suggested measure is. The main implications are that future projects that aim to achieve broad participation in CF campaigns need to communicate well, to improve both public knowledge of the funding mechanism (CF) itself and the comprehensibility and salience of the agricultural measur