Do conditional monetary incentives drive behavioral changes and reduce greenhouse gas emissions in rice production? Evidence from a field experiment in the Mekong Delta, Vietnam

Rice production is a major contributor to greenhouse gas (GHG) emissions. Reducing GHG emissions in this sector is essential for achieving the climate targets. However, little is known about the effectiveness of monetary incentives for promoting low-emission practices. This study investigated whether conditional monetary incentives could drive behavioral changes and GHG emission reductions among rice farmers in the Mekong Delta, Vietnam. A field experiment was conducted with 200 farmers, applying difference-in-differences regression and inverse-probability-weighted regression adjustment models alongside behavioral indicators, namely, a change scale and a best practice scale. The results showed that monetary incentives had a limited effect on reducing GHG emissions as no statistically significant differences were observed between the treatment and control groups. However, moderate improvements were observed in low-emission practices, such as reducing the seed rate, nitrogen fertilizer, and pesticide spraying within the treatment group. The findings suggest that incentive-based programs should be combined with technical support, local stakeholder engagement, behavioral nudges, and robust monitoring systems. This study provides valuable insights into the limitations and design considerations of incentive interventions for low-emission rice production.