Investigating Monetary Incentives for Environmentally Friendly Residential Landscapes

Abstract

State and local governments develop policies that promote environmentally friendly landscaping practices with the goal to mitigate adverse environmental impacts from heavily maintained residential lawns. One of the mechanisms to achieve low-input landscaping practices in the urban environment is to promote the conversion of monoculture turfgrass lawns into partial turfgrass, low-input landscapes. Rebate incentives are used as an instrument to encourage the adoption of such landscapes. This study investigates the effects of households’ monetary incentive requirement on households’ preferences and willingness to pay for low-input landscapes. The discrete choice experiment method was used to analyze responses from households categorized into low, medium, and high incentive requirement groups. The results show that rebate incentives may have significant positive effects on individuals’ intentions to adopt low-input landscapes. Participants with low incentive requirement were willing to pay more for environmentally friendly attributes, compared with their counterparts in the medium and high incentive requirement groups. Practical implications for relevant stakeholders are discussed.