IDEAS home Printed from https://ideas.repec.org/p/zbw/vfsc20/224536.html
   My bibliography  Save this paper

Imperfect Procedural Knowledge: Evidence from a Field Experiment to Encourage Water Conservation

Author

Listed:
  • Tonke, Sebastian

Abstract

Individuals often desire to achieve certain outcomes, but potentially lack the procedural knowledge on how to do so. This study provides causal evidence that imperfect procedural knowledge is a severe obstacle to efficient behavior, but can be overcome by providing low-cost information. I conduct a large-scale field experiment with a public water utility to encourage water conservation during a drought. Providing mass-targeted conservation strategies via text message decreases consumption by 5.2 percent. Additional treatments encouraging individuals to develop own strategies are ineffective and rule out alternative explanations such as reminders, awareness of water scarcity, or being asked to reduce consumption.

Suggested Citation

  • Tonke, Sebastian, 2020. "Imperfect Procedural Knowledge: Evidence from a Field Experiment to Encourage Water Conservation," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224536, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc20:224536
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/224536/1/vfs-2020-pid-38851.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. MacKinnon, James G & Magee, Lonnie, 1990. "Transforming the Dependent Variable in Regression Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 315-339, May.
    2. Fehr, Ernst & Falk, Armin, 2002. "Psychological foundations of incentives," European Economic Review, Elsevier, vol. 46(4-5), pages 687-724, May.
    3. Abhijit Banerjee & Rukmini Banerji & James Berry & Esther Duflo & Harini Kannan & Shobhini Mukerji & Marc Shotland & Michael Walton, 2017. "From Proof of Concept to Scalable Policies: Challenges and Solutions, with an Application," Journal of Economic Perspectives, American Economic Association, vol. 31(4), pages 73-102, Fall.
    4. Tiefenbeck, Verena & Staake, Thorsten & Roth, Kurt & Sachs, Olga, 2013. "For better or for worse? Empirical evidence of moral licensing in a behavioral energy conservation campaign," Energy Policy, Elsevier, vol. 57(C), pages 160-171.
    5. Ian Ayres & Sophie Raseman & Alice Shih, 2013. "Evidence from Two Large Field Experiments that Peer Comparison Feedback Can Reduce Residential Energy Usage," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 29(5), pages 992-1022, October.
    6. Uri Gneezy & Stephan Meier & Pedro Rey-Biel, 2011. "When and Why Incentives (Don't) Work to Modify Behavior," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 191-210, Fall.
    7. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
    8. Miriam Bruhn & Dean Karlan & Antoinette Schoar, 2018. "The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 635-687.
    9. Dora L. Costa & Matthew E. Kahn, 2013. "Energy Conservation “Nudges” And Environmentalist Ideology: Evidence From A Randomized Residential Electricity Field Experiment," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 680-702, June.
    10. Nicholas Bloom & Benn Eifert & Aprajit Mahajan & David McKenzie & John Roberts, 2013. "Does Management Matter? Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(1), pages 1-51.
    11. Katrina Jessoe & David Rapson, 2014. "Knowledge Is (Less) Power: Experimental Evidence from Residential Energy Use," American Economic Review, American Economic Association, vol. 104(4), pages 1417-1438, April.
    12. María Bernedo & Paul Ferraro & Michael Price, 2014. "The Persistent Impacts of Norm-Based Messaging and Their Implications for Water Conservation," Journal of Consumer Policy, Springer, vol. 37(3), pages 437-452, September.
    13. Koichiro Ito, 2014. "Do Consumers Respond to Marginal or Average Price? Evidence from Nonlinear Electricity Pricing," American Economic Review, American Economic Association, vol. 104(2), pages 537-563, February.
    14. Amy Finkelstein, 2009. "E-ztax: Tax Salience and Tax Rates," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(3), pages 969-1010.
    15. Raj Chetty & Adam Looney & Kory Kroft, 2009. "Salience and Taxation: Theory and Evidence," American Economic Review, American Economic Association, vol. 99(4), pages 1145-1177, September.
    16. Miriam Bruhn & David McKenzie, 2009. "In Pursuit of Balance: Randomization in Practice in Development Field Experiments," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 200-232, October.
    17. Szabó, Andrea & Ujhelyi, Gergely, 2015. "Reducing nonpayment for public utilities: Experimental evidence from South Africa," Journal of Development Economics, Elsevier, vol. 117(C), pages 20-31.
    18. Shaun McRae, 2015. "Infrastructure Quality and the Subsidy Trap," American Economic Review, American Economic Association, vol. 105(1), pages 35-66, January.
    19. Alec Brandon & Paul Ferraro & John List & Robert Metcalfe & Michael Price & Florian Rundhammer, 2017. "Do the effects of social nudges persist? Theory and evidence from 38 natural field experiments," Natural Field Experiments 00598, The Field Experiments Website.
    20. Omar Al-Ubaydli & John A. List & Dana L. Suskind, 2017. "What Can We Learn from Experiments? Understanding the Threats to the Scalability of Experimental Results," American Economic Review, American Economic Association, vol. 107(5), pages 282-286, May.
    21. Eszter Czibor & David Jimenez‐Gomez & John A. List, 2019. "The Dozen Things Experimental Economists Should Do (More of)," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 371-432, October.
    22. Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(3), pages 489-520.
    23. Greer K. Gosnell & John A. List & Robert D. Metcalfe, 2020. "The Impact of Management Practices on Employee Productivity: A Field Experiment with Airline Captains," Journal of Political Economy, University of Chicago Press, vol. 128(4), pages 1195-1233.
    24. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    25. Uri Gneezy & John A List, 2006. "Putting Behavioral Economics to Work: Testing for Gift Exchange in Labor Markets Using Field Experiments," Econometrica, Econometric Society, vol. 74(5), pages 1365-1384, September.
    26. Alec Brandon & Paul J. Ferraro & John A. List & Robert D. Metcalfe & Michael K. Price & Florian Rundhammer, 2017. "Do The Effects of Nudges Persist? Theory and Evidence from 38 Natural Field Experiments," NBER Working Papers 23277, National Bureau of Economic Research, Inc.
    27. Olmstead, Sheila M. & Michael Hanemann, W. & Stavins, Robert N., 2007. "Water demand under alternative price structures," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 181-198, September.
    28. Richard H. Thaler, 2018. "From Cashews to Nudges: The Evolution of Behavioral Economics," American Economic Review, American Economic Association, vol. 108(6), pages 1265-1287, June.
    29. Ferraro, Paul J. & Miranda, Juan José, 2013. "Heterogeneous treatment effects and mechanisms in information-based environmental policies: Evidence from a large-scale field experiment," Resource and Energy Economics, Elsevier, vol. 35(3), pages 356-379.
    30. David McKenzie, 2017. "Identifying and Spurring High-Growth Entrepreneurship: Experimental Evidence from a Business Plan Competition," American Economic Review, American Economic Association, vol. 107(8), pages 2278-2307, August.
    31. Hunt Allcott, 2015. "Site Selection Bias in Program Evaluation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(3), pages 1117-1165.
    32. Jaime Torres, Mónica M. & Carlsson, Fredrik, 2018. "Direct and spillover effects of a social information campaign on residential water-savings," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 222-243.
    33. Buchanan, Kathryn & Russo, Riccardo & Anderson, Ben, 2015. "The question of energy reduction: The problem(s) with feedback," Energy Policy, Elsevier, vol. 77(C), pages 89-96.
    34. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    35. Paul J. Ferraro & Michael K. Price, 2013. "Using Nonpecuniary Strategies to Influence Behavior: Evidence from a Large-Scale Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 64-73, March.
    36. Soheil Hooshangi & George Loewenstein, 2018. "The Impact of Idea Generation and Potential Appropriation on Entrepreneurship: An Experimental Study," Management Science, INFORMS, vol. 64(1), pages 64-82, January.
    37. Daniel A. Brent & Joseph H. Cook & Skylar Olsen, 2015. "Social Comparisons, Household Water Use, and Participation in Utility Conservation Programs: Evidence from Three Randomized Trials," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(4), pages 597-627.
    38. Rema Hanna & Sendhil Mullainathan & Joshua Schwartzstein, 2014. "Learning Through Noticing: Theory and Evidence from a Field Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(3), pages 1311-1353.
    39. Federico Belotti & Partha Deb & Willard G. Manning & Edward C. Norton, 2015. "twopm: Two-part models," Stata Journal, StataCorp LP, vol. 15(1), pages 3-20, March.
    40. Delmas, Magali A. & Fischlein, Miriam & Asensio, Omar I., 2013. "Information strategies and energy conservation behavior: A meta-analysis of experimental studies from 1975 to 2012," Energy Policy, Elsevier, vol. 61(C), pages 729-739.
    41. Hunt Allcott & Todd Rogers, 2014. "The Short-Run and Long-Run Effects of Behavioral Interventions: Experimental Evidence from Energy Conservation," American Economic Review, American Economic Association, vol. 104(10), pages 3003-3037, October.
    42. N. E. Savin, 1980. "The Bonferroni and the Scheffé Multiple Comparison Procedures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 255-273.
    43. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    44. Verena Tiefenbeck & Lorenz Goette & Kathrin Degen & Vojkan Tasic & Elgar Fleisch & Rafael Lalive & Thorsten Staake, 2018. "Overcoming Salience Bias: How Real-Time Feedback Fosters Resource Conservation," Management Science, INFORMS, vol. 64(3), pages 1458-1476, March.
    45. Andor, Mark A. & Fels, Katja M., 2018. "Behavioral Economics and Energy Conservation – A Systematic Review of Non-price Interventions and Their Causal Effects," Ecological Economics, Elsevier, vol. 148(C), pages 178-210.
    46. Paul J. Ferraro & Juan Jose Miranda & Michael K. Price, 2011. "The Persistence of Treatment Effects with Norm-Based Policy Instruments: Evidence from a Randomized Environmental Policy Experiment," American Economic Review, American Economic Association, vol. 101(3), pages 318-322, May.
    47. Koichiro Ito & Takanori Ida & Makoto Tanaka, 2018. "Moral Suasion and Economic Incentives: Field Experimental Evidence from Energy Demand," American Economic Journal: Economic Policy, American Economic Association, vol. 10(1), pages 240-267, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andor, Mark A. & Gerster, Andreas & Peters, Jörg, 2022. "Information campaigns for residential energy conservation," European Economic Review, Elsevier, vol. 144(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andor, Mark A. & Gerster, Andreas & Peters, Jörg, 2022. "Information campaigns for residential energy conservation," European Economic Review, Elsevier, vol. 144(C).
    2. Andor, Mark A. & Gerster, Andreas & Peters, Jörg & Schmidt, Christoph M., 2020. "Social Norms and Energy Conservation Beyond the US," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    3. Bonan, Jacopo & Cattaneo, Cristina & d’Adda, Giovanna & Tavoni, Massimo, 2021. "Can social information programs be more effective? The role of environmental identity for energy conservation," Journal of Environmental Economics and Management, Elsevier, vol. 108(C).
    4. Cattaneo, Cristina & D’Adda, Giovanna & Tavoni, Massimo & Bonan, Jacopo, 2019. "Can We Make Social Information Programs More Effective? The Role of Identity and Values," RFF Working Paper Series 19-21, Resources for the Future.
    5. Jessoe, Katrina & Lade, Gabriel E. & Loge, Frank & Spang, Edward, 2021. "Residential water conservation during drought: Experimental evidence from three behavioral interventions," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    6. Joseph,George & Ayling,Sophie Charlotte Emi & Miquel-Florensa,Pepita & Bejarano,Hernán D. & Cardona,Alejandra Quevedo, 2021. "Behavioral Insights in Infrastructure Sectors : A Survey," Policy Research Working Paper Series 9704, The World Bank.
    7. Daniel A. Brent & Corey Lott & Michael Taylor & Joseph Cook & Kim Rollins & Shawn Stoddard, 2017. "Are Normative Appeals Moral Taxes? Evidence from a Field Experiment on Water Conservation," Departmental Working Papers 2017-07, Department of Economics, Louisiana State University.
    8. Daniel A. Brent & Corey Lott & Michael Taylor & Joseph Cook & Kimberly Rollins & Shawn Stoddard, 2020. "What Causes Heterogeneous Responses to Social Comparison Messages for Water Conservation?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(3), pages 503-537, November.
    9. Pratt, Bryan, 2020. "Property Tenure and Determinants of Sensitivity to Price and Non-Price Conservation Instruments," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304283, Agricultural and Applied Economics Association.
    10. Asensio, Omar Isaac & Delmas, Magali A., 2016. "The dynamics of behavior change: Evidence from energy conservation," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PA), pages 196-212.
    11. Jakob Enlund & David Andersson & Fredrik Carlsson, 2023. "Individual Carbon Footprint Reduction: Evidence from Pro-environmental Users of a Carbon Calculator," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 433-467, November.
    12. Astrid Dannenberg & Gunnar Gutsche & Marlene Batzke & Sven Christens & Daniel Engler & Fabian Mankat & Sophia Moeller & Eva Weingaertner & Andreas Ernst & Marcel Lumkowsky & Georg von Wangenheim & Ger, 2022. "The effects of norms on environmental behavior," MAGKS Papers on Economics 202219, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    13. Hailey Hayeon Joo & Jungmin Lee & Sangkon Park, 2018. "Every Drop Counts: A Water Conservation Experiment With Hotel Guests," Economic Inquiry, Western Economic Association International, vol. 56(3), pages 1788-1808, July.
    14. Holladay, Scott & LaRiviere, Jacob & Novgorodsky, David & Price, Michael, 2019. "Prices versus nudges: What matters for search versus purchase of energy investments?," Journal of Public Economics, Elsevier, vol. 172(C), pages 151-173.
    15. Myers, Erica & Souza, Mateus, 2020. "Social comparison nudges without monetary incentives: Evidence from home energy reports," Journal of Environmental Economics and Management, Elsevier, vol. 101(C).
    16. Andor, Mark A. & Fels, Katja M., 2018. "Behavioral Economics and Energy Conservation – A Systematic Review of Non-price Interventions and Their Causal Effects," Ecological Economics, Elsevier, vol. 148(C), pages 178-210.
    17. Kim, Jin Han & Kaemingk, Michael, 2021. "Persisting effects of social norm feedback letters in reducing household electricity usage in Post-Soviet Eastern Europe: A randomized controlled trial," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 153-161.
    18. Andor, Mark Andreas & Götte, Lorenz & Price, Michael Keith & Schulze Tilling, Anna & Tomberg, Lukas, 2023. "Differences in how and why social comparisons and real-time feedback impact resource use: Evidence from a field experiment," Ruhr Economic Papers 1059, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    19. Ek, Claes & Söderberg, Magnus, 2021. "Norm-based feedback on household waste: Large-scale field experiments in two Swedish municipalities," Working Papers in Economics 804, University of Gothenburg, Department of Economics.
    20. Andrius Kažukauskas & Thomas Broberg & Jūratė Jaraitė, 2021. "Social Comparisons in Real Time: A Field Experiment of Residential Electricity and Water Use," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(2), pages 558-592, April.

    More about this item

    Keywords

    Field experiment; information provision; resource conservation;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc20:224536. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/vfsocea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.