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Peer Effects in Residential Water Conservation: Evidence from Migration†

Peer Effects in Residential Water Conservation: Evidence from Migration† AbstractSocial 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. (JEL D12, L95, Q25, Q54, Z13) http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Economic Journal Economic Policy American Economic Association

Peer Effects in Residential Water Conservation: Evidence from Migration†

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References (45)

Publisher
American Economic Association
Copyright
Copyright © 2020 © American Economic Association
ISSN
1945-7731
DOI
10.1257/pol.20180559
Publisher site
See Article on Publisher Site

Abstract

AbstractSocial 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. (JEL D12, L95, Q25, Q54, Z13)

Journal

American Economic Journal Economic PolicyAmerican Economic Association

Published: Aug 1, 2020

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