Working Paper: NBER ID: w17189
Authors: Paul J. Ferraro; Michael K. Price
Abstract: Policymakers are increasingly using norm-based messages to influence individual decision-making. We partner with a metropolitan water utility to implement a natural field experiment examining the effect of such messages on residential water demand. The data, drawn from more than 100,000 households, indicate that social comparison messages had a greater influence on behavior than simple pro-social messages or technical information alone. Moreover, our data suggest social comparison messages are most effective among households identified as the least price sensitive: high-users. Yet the effectiveness of such messages wanes over time. Our results thus highlight important complementarities between pecuniary and non-pecuniary strategies.
Keywords: nonpecuniary strategies; behavioral economics; water conservation; field experiment
JEL Codes: C93; D03; Q2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Technical advice (Y20) | Water consumption (Q25) |
| Social comparison messages + Technical advice (C52) | Water consumption (Q25) |
| Social comparison messages (Z13) | Water consumption (high users) (Q25) |
| Time since intervention (C41) | Effectiveness of strategies (C90) |
| Social comparison messages (Z13) | Water consumption (Q25) |