Within the EcoWheataly project, the research group from the University “G. d’Annunzio” of Chieti-Pescara — including Piera Cascioli and Gianfranco Giulioni — has developed an innovative approach to studying wheat production: a model that combines Life Cycle Assessment (LCA) with behavioral economics.
From Profit to Environmental Awareness
Traditional economic models describe farmers as perfectly rational actors, interested solely in maximizing profit.
But reality is more complex: agricultural decisions are shaped by personal values, risk perception, and environmental awareness.
For this reason, the team introduced an innovative parameter in the model, Θ (Theta), which measures how much importance a farmer gives to environmental impact compared to economic gain.
In other words, Θ represents the farmer’s ecological conscience:
- if Θ = 0, the farmer ignores environmental aspects and focuses only on profit;
- if Θ > 0, they are willing to sacrifice part of their income to reduce environmental impacts.
At the Core of the Model: Combining LCA and Behavioral Economics
Cascioli and Giulioni’s approach starts from nitrogen fertilizer, one of the key inputs in wheat cultivation.
Their research shows that as nitrogen use increases, both profit and environmental impact rise — the latter measured in DALY (a health-damage indicator).
The relationship between these two dimensions generates an efficient frontier curve: a set of optimal trade-offs between yield and sustainability.
The proposed utility model is:
U(x) = π(x) − Θ ⋅ DALY(x)
This means that farmers no longer maximize only income π(x), but a utility function that incorporates environmental damage.
Higher values of Θ shift the optimal choice toward lower nitrogen use (N*), accepting a lower profit in exchange for reduced impacts.
Different Farmers, Different Decisions
One of the most interesting aspects of the model is its ability to customize agricultural behavior.
Θ is calculated as a function of farmer characteristics:
- Age — younger farmers tend to be more open to sustainable innovations.
- Gender — women show greater concern for health and the environment (Fanelli 2022).
- Farm size — larger farms have more resources to adopt sustainable practices.
As a result, there is no universal optimal behavior: each socioeconomic profile responds differently to environmental policies.
Implications for Agricultural Policy
The model offers a valuable lens for interpreting the CAP and European green policies.
Environmental measures work only if farmers accept and apply them.
Theta helps explain why some farmers adopt ecological measures easily, while others perceive them as obstacles.
From this perspective, three strategic actions emerge:
- Support those with strong environmental awareness (high Θ) — young farmers and women may act as “early adopters” of sustainable practices.
- Tailor incentives — those with low Θ require different tools: direct economic incentives, training, technical assistance.
- Avoid one-size-fits-all policies — because agricultural behavior is as diverse as the fields themselves.
Toward a More Complete Model
The research group is now expanding the model to include:
- additional inputs (herbicides, insecticides, not only nitrogen),
- more environmental indicators, covering ecosystem and water-resource impacts.
The goal is to build a flexible simulation tool capable of evaluating complex policy scenarios that integrate economy, health, and environment.
A Change of Perspective
As Piera Cascioli explains, “the real innovation is not only measuring environmental impacts, but understanding the decision-making process that generates them.”
A simple yet revolutionary idea: sustainability begins in the farmer’s mind, and only then in the fields.
Sources:
- Cascioli, P., Giulioni, G. – University “G. d’Annunzio” Chieti-Pescara, DiSEGS Department
- Serebrennikov et al. (2020), Domagała (2021), Fanelli (2022), Liebert et al. (2022)
- EcoWheataly – Meeting Rome 2025
- MUR PRIN 2022 “Evaluation of Policies for Enhancing Sustainable Wheat Production in Italy”