Abstract
This study investigates the effectiveness of different financial incentives to reduce crop residue burning (CRB) among farmers in Thailand. Using a field experiment, we evaluate three treatment groups and a control group. The control group receives no intervention, serving as a baseline to observe CRB practices. In the treatment groups, farmers are rewarded for adopting alternative methods to manage crop residue. In T1, farmers receive a guaranteed cash payment for avoiding CRB. In T2, farmers who avoid CRB receive a lottery with an equal probability of receiving a payment either lower or higher than the guaranteed amount in T1. In T3, farmers are placed in anonymous groups of four, with cash transfers contingent on at least two group members refraining from CRB. This design enables us to compare the efficacy of fixed payments, probabilistic rewards, and group-based incentives in promoting sustainable agricultural practices.