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A discrete choice experiment-based framework for designing farmer-centric voluntary carbon credit programs: A policy
Banda Sainath1, Ujjwal Kumar1, Anirban Mukherjee1
1ICAR Research Complex for Eastern Region, Patna, Bihar, 800014, India.
Journal of Environmental Management
|April 8, 2026
Summary
Indian smallholder farmers show willingness to join voluntary carbon credit (VCC) programs. Prioritizing upfront financial incentives and training support is key to boosting participation in climate-smart agriculture initiatives.
Area of Science:
- Agricultural Science
- Climate Change Mitigation
- Environmental Economics
Background:
- Smallholder agriculture in India is vulnerable to climate change impacts.
- Participation in voluntary carbon credit (VCC) programs for soil carbon sequestration is limited.
- VCC programs are in their early stages in India, with emerging scholarly assessment.
Purpose of the Study:
- To examine the willingness of Indian smallholder farmers to engage in VCC programs.
- To identify key program attributes influencing farmer participation.
- To address the micro-level evidence gap in VCC program engagement.
Main Methods:
- Conducted a Discrete Choice Experiment (DCE) survey with 100 smallholder farmers in Buxar, Bihar, India.
- Utilized conditional logit modeling to analyze farmer preferences.
- Employed latent class analysis to identify distinct farmer segments.
Main Results:
- Farmers strongly prefer upfront financial incentives over post-adoption payments.
- Targeted training support is a significant factor in farmer willingness to participate.
- Latent class analysis revealed three distinct farmer segments with varying attribute preferences.
Conclusions:
- Farmer-centered frameworks addressing local needs and promoting collective action are crucial for widespread VCC program adoption.
- VCC programs should prioritize upfront incentives and structured training to reduce barriers and risks.
- Findings offer actionable insights for policymakers and stakeholders promoting climate-smart agriculture in India.
Keywords:
Carbon farmingClimate changeDiscrete choice experimentProgram participationSmallholder farmersVoluntary carbon marketsMore Related Videos
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