IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/7283.html
   My bibliography  Save this paper

A behavioral approach to water conservation: evidence from Costa Rica

Author

Listed:
  • Datta,Saugato
  • Miranda Montero,Juan Jose
  • Zoratto,Laura De Castro
  • Calvo-Gonzalez,Oscar
  • Darlingm,Matthew
  • Lorenzana,Karina Josephine Orduna

Abstract

This paper presents the design a set of three simple and replicable behavioral interventions, which use stickers that can be added to water bills at low cost, and test their impact on water consumption in Belen, Costa Rica, using a randomized control trial. Two of the three interventions were found to decrease water consumption significantly in the months following the intervention. A descriptive social norm intervention using neighborhood comparisons reduces consumption by between 3.7 and 5.6 percent relative to a control group, while a plan-making intervention reduces consumption by between 3.4 and 5.5 percent. While the two interventions have similar results, they are effective on different subpopulations, with the plan-making intervention being most effective for low-consumption households, while the neighborhood comparison intervention is most effective for high-consumption households. The results demonstrate that behavioral interventions, which have hitherto utilized sophisticated software to deliver customized messages, can be effectively implemented by local governments in developing countries, where technology and resource constraints render the sorts of customized messaging that has typically been used to deliver them in developed countries unfeasible. The results further confirm that raising awareness about how much water an individual consumes, and comparing this consumption level with peers, can go a long way in helping change individuals? behavior regarding the use of a finite resource such as water.

Suggested Citation

  • Datta,Saugato & Miranda Montero,Juan Jose & Zoratto,Laura De Castro & Calvo-Gonzalez,Oscar & Darlingm,Matthew & Lorenzana,Karina Josephine Orduna, 2015. "A behavioral approach to water conservation: evidence from Costa Rica," Policy Research Working Paper Series 7283, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7283
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/809801468001190306/pdf/WPS7283.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Harding, Matthew & Hsiaw, Alice, 2014. "Goal setting and energy conservation," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 209-227.
    2. Saugato Datta & Sendhil Mullainathan, 2014. "Behavioral Design: A New Approach to Development Policy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 7-35, March.
    3. 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.
    4. 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.
    5. Saugato Datta & Sendhil Mullainathan, 2014. "Behavioral Design: A New Approach to Development Policy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 7-35, March.
    6. Aziza Akhmouch, 2012. "Water Governance in Latin America and the Caribbean: A Multi-Level Approach," OECD Regional Development Working Papers 2012/4, OECD Publishing.
    7. 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.
    8. Brown, Zachary & Johnstone, Nick & Haščič, Ivan & Vong, Laura & Barascud, Francis, 2013. "Testing the effect of defaults on the thermostat settings of OECD employees," Energy Economics, Elsevier, vol. 39(C), pages 128-134.
    9. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    10. Brown, Zachary & Johnstone, Nick & Haščič, Ivan & Vong, Laura & Barascud, Francis, 2013. "Testing the effect of defaults on the thermostat settings of OECD employees," Energy Economics, Elsevier, vol. 39(C), pages 128-134.
    11. 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.
    12. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    13. 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.
    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. López-Pintado, Dunia & Meléndez-Jiménez, Miguel A., 2021. "Far above others," Journal of Economic Theory, Elsevier, vol. 198(C).
      • Dunia López-Pintado & Miguel A. Meléndez-Jiménez, 2018. "Far above others," Working Papers 18.12, Universidad Pablo de Olavide, Department of Economics.
    2. Jeroen van der Heijden, 2020. "Urban climate governance informed by behavioural insights: A commentary and research agenda," Urban Studies, Urban Studies Journal Limited, vol. 57(9), pages 1994-2007, July.
    3. Lambe, Fiona & Ran, Ylva & Jürisoo, Marie & Holmlid, Stefan & Muhoza, Cassilde & Johnson, Oliver & Osborne, Matthew, 2020. "Embracing complexity: A transdisciplinary conceptual framework for understanding behavior change in the context of development-focused interventions," World Development, Elsevier, vol. 126(C).
    4. 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.
    5. Rebecca Afua Klege & Martine Visser & Saugato Datta & Matthew Darling, 2022. "The Power of Nudging: Using Feedback, Competition, and Responsibility Assignment to Save Electricity in a Non-residential Setting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(3), pages 573-589, March.
    6. Tonke, Sebastian, 2024. "Providing procedural knowledge: A field experiment to encourage resource conservation in Namibia," Journal of Development Economics, Elsevier, vol. 166(C).
    7. Küper, Malte & Potthoff, Jennifer, 2022. "Wie Haushalte Gas sparen können: Welche Optionen abseits des Preises gibt es?," IW-Reports 45/2022, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    8. Martine Visser & Matthew Darling & Rebecca A. Klege & Saugato Datta, 2018. "“The Power of Nudging: Using Feedback, Competition and Responsibility Assignment to Save Electricity in a Non-Residential Settingâ€," Working Papers 763, Economic Research Southern Africa.
    9. Vasilaky, Kathryn & Harou, Aurélie & Alfredo, Katherine & Kapur, Ishita, 2023. "What works for water conservation? Evidence from a field experiment in India," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    10. Brick, Kerri & De Martino, Samantha & Visser, Martine, 2023. "Behavioural nudges for water conservation in unequal settings: Experimental evidence from Cape Town," Journal of Environmental Economics and Management, Elsevier, vol. 121(C).
    11. Massarutto, Antonio, 2020. "Servant of too many masters: Residential water pricing and the challenge of sustainability," Utilities Policy, Elsevier, vol. 63(C).
    12. Alcocer, Christian Diego & Torres, Elman Roman Torres, 2024. "Salience bias: A framework about the importance of prices and budget constraints perceptions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 110(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. Rebecca Afua Klege & Martine Visser & Saugato Datta & Matthew Darling, 2022. "The Power of Nudging: Using Feedback, Competition, and Responsibility Assignment to Save Electricity in a Non-residential Setting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(3), pages 573-589, March.
    2. Martine Visser & Matthew Darling & Rebecca A. Klege & Saugato Datta, 2018. "“The Power of Nudging: Using Feedback, Competition and Responsibility Assignment to Save Electricity in a Non-Residential Settingâ€," Working Papers 763, Economic Research Southern Africa.
    3. Brick, Kerri & De Martino, Samantha & Visser, Martine, 2023. "Behavioural nudges for water conservation in unequal settings: Experimental evidence from Cape Town," Journal of Environmental Economics and Management, Elsevier, vol. 121(C).
    4. 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.
    5. 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).
    6. Buckley, Penelope & Llerena, Daniel, 2022. "Nudges and peak pricing: A common pool resource energy conservation experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 101(C).
    7. 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.
    8. 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.
    9. Rachel Croson & Nicolas Treich, 2014. "Behavioral Environmental Economics: Promises and Challenges," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(3), pages 335-351, July.
    10. Penelope Buckley & Daniel Llerena, 2022. "Nudges and peak pricing: A common pool resource energy conservation experiment," Post-Print hal-03765755, HAL.
    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. Mekonnen, Alemu & Hassen, Sied & Jaime, Marcela & Toman, Michael & Zhang, Xiao-Bing, 2023. "The effect of information and subsidy on adoption of solar lanterns: An application of the BDM bidding mechanism in rural Ethiopia," Energy Economics, Elsevier, vol. 124(C).
    13. 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.
    14. 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.
    15. Wichman, Casey J. & Taylor, Laura O. & von Haefen, Roger H., 2016. "Conservation policies: Who responds to price and who responds to prescription?," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 114-134.
    16. Matilde Giaccherini & David Herberich & David Jimenez-Gomez & John List & Giovanni Ponti & Michael Price, 2020. "Are Economics and Psychology Complements in Household Technology Diffusion? Evidence from a Natural Field Experiment," Natural Field Experiments 00713, The Field Experiments Website.
    17. 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.
    18. 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.
    19. Wichman, Casey J., 2017. "Information provision and consumer behavior: A natural experiment in billing frequency," Journal of Public Economics, Elsevier, vol. 152(C), pages 13-33.
    20. Dietrich Earnhart & Paul J. Ferraro, 2021. "The Effect of Peer Comparisons on Polluters: A Randomized Field Experiment among Wastewater Dischargers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(4), pages 627-652, August.

    More about this item

    Keywords

    Economics and Institutions; Global Environment; Hydrology; Public Sector Management and Reform; Non Governmental Organizations;
    All these keywords.

    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:wbk:wbrwps:7283. 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: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.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.