Crowdfunding of Climate Mitigation Measures in Agriculture: Developing a Sustainable Business Model Concept

Abstract

Purpose: The purpose of this article is to develop a sustainable business model (SBM) concept for local crowdfunding of climate measures in agriculture. Many climate measures entail significant capital costs preventing farmers from their adoption, and existing finance schemes have experienced limited success. Crowdfunding can be a novel financing tool for farmers to implement climate measures in agriculture. Design/Methodology/Approach: We apply the adapted SBM canvas framework and argue that the framework presents a suitable tool for identifying and validating business models for a local crowdfunding program. Findings: By applying the adapted SBM canvas tool and through an extensive mixed method approach, the study identifies 6 relevant design principles for SBM development and relates them to different dimensions in the SBM canvas. Practical Implications: The study develops a proven business model concept that can be implemented by practitioners and farmers to facilitate the adoption of climate change mitigation measures, overall contributing to the transition to a low emission society. Originality/Value: This study demonstrates the existing limitations of the adapted SBM canvas and suggests how it can be improved by integrating external structural constraints that can be a barrier to business model development. Moreover, we contribute to the SBM literature by being the first to connect Design Science with crowdfunding and the adapted SBM canvas.