Peer Effects in Residential Water Conservation: Evidence from Migration
American Economic Journal: Economic Policy
vol. 12,
no. 3, August 2020
(pp. 107-33)
Abstract
Social interactions are widely understood to influence consumer decisions in many choice settings. This paper identifies causal peer effects in residential water conservation during the summer using variation from movers. We classify high-resolution remote sensing images to provide evidence that conversions of green landscaping to dry landscaping are a primary determinant of the reductions in water consumption. We also find suggestive evidence that without a price signal, peer effects are muted, indicating a possible complementarity between information and prices. These results inform water use policy in many areas of the world threatened by recurring drought conditions.Citation
Bollinger, Bryan, Jesse Burkhardt, and Kenneth T. Gillingham. 2020. "Peer Effects in Residential Water Conservation: Evidence from Migration." American Economic Journal: Economic Policy, 12 (3): 107-33. DOI: 10.1257/pol.20180559Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- L95 Gas Utilities; Pipelines; Water Utilities
- Q25 Renewable Resources and Conservation: Water
- Q54 Climate; Natural Disasters and Their Management; Global Warming
- Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
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