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Peer Effects in Residential Water Conservation: Evidence from Migration

Bryan Bollinger, Jesse Burkhardt and Kenneth Gillingham ()

American Economic Journal: Economic Policy, 2020, vol. 12, issue 3, 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.

JEL-codes: D12 L95 Q25 Q54 Z13 (search for similar items in EconPapers)
Date: 2020
Note: DOI: 10.1257/pol.20180559
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Handle: RePEc:aea:aejpol:v:12:y:2020:i:3:p:107-33