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Peer Effects in Water Conservation: Evidence from Consumer Migration

Author

Listed:
  • Bryan Bollinger
  • Jesse Burkhardt
  • Kenneth Gillingham

Abstract

Social interactions are widely understood to influence consumer decisions in many choice settings. This paper identifies causal peer effects in water conservation during the growing season, utilizing variation from consumer migration. We use machine learning to classify high-resolution remote sensing images to provide evidence that conversion to dry landscaping underpins the peer effects in water consumption. We also provide evidence that without a price signal, peer effects are muted, demonstrating a complementarity between information transmission and prices. These results inform water use policy in many areas of the world threatened by recurring drought conditions.

Suggested Citation

  • Bryan Bollinger & Jesse Burkhardt & Kenneth Gillingham, 2018. "Peer Effects in Water Conservation: Evidence from Consumer Migration," NBER Working Papers 24812, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24812
    Note: EEE
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    Citations

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    Cited by:

    1. Alexandra E. Hill & Jesse Burkhardt, 2021. "Peers in the Field: The Role of Ability and Gender in Peer Effects among Agricultural Workers," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 790-811, May.
    2. Elinder, Mikael & Hu, Xiao & Liang, Che-Yuan, 2021. "Water conservation and the common pool problem: Can pricing address free-riding in residential hot water consumption?," CERE Working Papers 2021:12, CERE - the Center for Environmental and Resource Economics.
    3. Andrea La Nauze, 2023. "Motivation Crowding in Peer Effects: The Effect of Solar Subsidies on Green Power Purchases," The Review of Economics and Statistics, MIT Press, vol. 105(6), pages 1465-1480, November.
    4. Ke Liu & Zhenhong Qi & Li Tan & Canwei Hu, 2023. "How Neighbors Influence Rice–Crayfish Integrated System Adoption: Evidence from 980 Farmers in the Lower and Middle Reaches of the Yangtze River," IJERPH, MDPI, vol. 20(5), pages 1-13, March.
    5. Adloff, Susann, 2021. "Adapting to Climate Change: Threat Experience, Cognition and Protection Motivation," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242400, Verein für Socialpolitik / German Economic Association.
    6. Kenneth T. Gillingham & Bryan Bollinger, 2021. "Social Learning and Solar Photovoltaic Adoption," Management Science, INFORMS, vol. 67(11), pages 7091-7112, November.

    More about this item

    JEL classification:

    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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