Empowerment of social norms on water consumption

Pauline Pedehour and Lionel Richefort
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Pauline Pedehour: Université de Nantes

No 2021.20, Working Papers from Fondazione Eni Enrico Mattei

Abstract: This study develops a model of water extraction with endogenous social norms. Many users are connected by a unique shared resource that can become scarce in case of over-exploitation. Preferences of individuals are guided by their extraction values and their taste for conformity to social norms which provide incentives to follow others. As the main result of this study, the uniqueness of the Nash equilibrium is established under a sufficient condition. Afterward, some comparative statics analysis shows the effects of change in individual heterogeneous parameters, conformism, and density of the network on the global quantity extracted. Welfare and social optimum properties are established to avoid the tragedy of the commons and sub-optimal consumptions of water. Lastly, this theoretical framework is completed by extensions to highlight levers of water preservation, including the calibration of social norm incentives.

Keywords: Comparative statics; Conformism; Nash equilibrium; Network; Social norms; Water extraction (search for similar items in EconPapers)
JEL-codes: D04 D80 Q01 Q25 (search for similar items in EconPapers)
Date: 2021-07
New Economics Papers: this item is included in nep-agr, nep-env, nep-gth, nep-isf, nep-net, nep-reg and nep-soc
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Related works:
Journal Article: Empowerment of Social Norms on Water Consumption (2022)
Working Paper: Empowerment of Social Norms on Water Consumption (2022)
Working Paper: Empowerment of social norms on water consumption (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2021.20

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