Do Behavioral Nudges Interact with Prevailing Economic Incentives? Pairing Experimental and Quasi-Experimental Evidence from Water Consumption
This working paper examines how the interaction of behavioral interventions and utility prices affects consumer water conservation.
Behavioral nudges are popular instruments to promote prosocial behavior, particularly in settings with unpriced externalities. Nudges may interact with existing incentives, however, by crowding out intrinsic motivation to conserve or by increasing price salience. We investigate the interaction of prices and nudges for water conservation in two experiments in neighboring utilities. First, we layer randomized behavioral treatments on top of price variation driven by lot-size thresholds that exogenously assign marginal prices. Second, we explore whether behavioral treatments affect consumers’ price elasticities. Our findings suggest that nudges do not induce more conservation at higher prices, nor do they increase price sensitivity.
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Report — Jun 5, 2023
Valuing a Reduction in The Risk of Asthma: A Large-Scale Multi-Country Stated Preference Approach
RFF research contributed to this OECD working paper estimating willingness to pay to avoid asthma or reduce its severity.
On the Issues — May 19, 2023
On the Issues: US Debt Limit, Climate Hits Home, and More
A biweekly newsletter connecting global current events, pressing climate and energy policy news, and economics research from RFF scholars. This week: US debt limit, climate change hits home, and more.
Working Paper — May 10, 2023
The Impact of the Clean Air Act on Particulate Matter in the 1970s
This working paper reviews the definition of nonattainment status under the Clean Air Act to determine the designation's relationship with total suspended particulate readings.