Man vs. Machine: Technological Promise and Political Limits of Automated Regulation Enforcement

Oliver R. Browne, Ludovica Gazze, Michael Greenstone and Olga Rostapshova
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Oliver R. Browne: University of California, Berkeley
Ludovica Gazze: University of Warwick, Department of Economics & CAGE
Olga Rostapshova: University of Chicago

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: New technologies allow perfect detection of environmental violations at near-zero marginal cost, but take-up is low. We conducted a field experiment to evaluate enforcement of water conservation rules with smart meters in Fresno, CA. Households were randomly assigned combinations of enforcement method (automated or in-person inspections) and fines. Automated enforcement increased households’ punishment rates from 0.1 to 14%, decreased water use by 3%, and reduced violations by 17%, while higher fine levels had little effect. However, automated enforcement also increased customer complaints by 1,102%, ultimately causing its cancellation and highlighting that political considerations limit technological solutions to enforcement challenges.

Keywords: Field Experiment; Automated Enforcement; Remote Sensing; Water Conservation JEL Codes: Q25; K42 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-env, nep-exp, nep-law, nep-reg and nep-res
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https://warwick.ac.uk/fac/soc/economics/research/c ... tions/wp646.2022.pdf

Related works:
Working Paper: Man vs. Machine: Technological Promise and Political Limits of Automated Regulation Enforcement (2023)
Working Paper: Man vs. Machine: Technological Promise and Political Limits of Automated Regulation Enforcement (2022)
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