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The impact of announcing a payment assistance program on UK household water consumption: A regression discontinuity analysis

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  • Tyllianakis, Emmanouil
  • Rigas, Nikos
  • Kounetas, Konstantinos E.

Abstract

Information campaigns aimed at social norms are a mainstay tool for utilities. The announcement effect of such policies is usually ignored in favour of ex-post examinations of campaigns' outcomes. This paper examines the effects of announcing a ‘help-to-pay’ program from a United Kingdom (UK) water utility company for households facing a uniform price for water. This study uses data for around 6000 Yorkshire Water households between 2018 and 2020, adopting cross-sectional Regression Discontinuity (RD) and regression approaches. Leveraging household characteristics, social characteristics and weather-related information such as rainfall and temperature at the regional level, this study explains household water consumption behaviour on and around the announced £350 per year water bill threshold. Results indicate a discontinuity in annual household water consumption around the threshold, and announcing the eligibility criteria of the help-to-pay program results in higher water consumption for households meeting some criteria (11.9k litres/household/year). Through falsification tests, evidence exists of household strategic behaviour around the threshold. With water bills in the UK scheduled to increase by up to 40 % in the coming years, this research provides valuable insights into the effect that announcing bill support schemes can have and insights on potential strategic behaviour on behalf of households attempting to offset costs.

Suggested Citation

  • Tyllianakis, Emmanouil & Rigas, Nikos & Kounetas, Konstantinos E., 2025. "The impact of announcing a payment assistance program on UK household water consumption: A regression discontinuity analysis," Utilities Policy, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:juipol:v:96:y:2025:i:c:s0957178725000967
    DOI: 10.1016/j.jup.2025.101981
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    Keywords

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    JEL classification:

    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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