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

Author

Listed:
  • Browne, Oliver R.

    (University of California, Berkeley)

  • Gazze, Ludovica

    (University of Warwick, Department of Economics & CAGE)

  • Greenstone, Michael

    (University of Chicago)

  • Rostapshova, Olga

    (University of Chicago)

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.

Suggested Citation

  • Browne, Oliver R. & Gazze, Ludovica & Greenstone, Michael & Rostapshova, Olga, 2022. "Man vs. Machine : Technological Promise and Political Limits of Automated Regulation Enforcement," CAGE Online Working Paper Series 646, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:646
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp646.2022.pdf
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    Cited by:

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    2. Vieira, João Pedro & Dahis, Ricardo & Assunção, Juliano, 2023. "From Deforestation to Reforestation: The Role of General Deterrence in Changing Farmers' Behavior," SocArXiv vqpkm, Center for Open Science.

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    More about this item

    Keywords

    Field Experiment ; Automated Enforcement ; Remote Sensing ; Water Conservation JEL Codes: Q25 ; K42;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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