Do reduced tillage incentives effectively target soil erosion hotspots?

Summary

We assess whether soil erosion risk affects voluntary enrolment in a reduced tillage agri-environmental scheme. We utilise a novel geospatial dataset comprising 301,114 arable plot observations in Switzerland spanning 2023 and 2024. We find a clear mismatch between soil erosion risk and enrolment: for example, a 1% increase in erosion risk is associated with a 1.4 hundredths-of-a-percentage-point increase in enrolment probability. Current designs of agri-environmental schemes, which pay remuneration at a flat rate, are likely ineffective and inefficient. Our results highlight the need for differentiated policy mixes, including regulatory and incentive measures, to better address the threat of soil erosion.