NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Conservation Policies: Who Responds to Price and Who Responds to Prescription?

Casey J. Wichman, Laura O. Taylor, Roger H. von Haefen

NBER Working Paper No. 20466
Issued in September 2014
NBER Program(s):Environment and Energy Economics

The efficiency properties of price and non-price instruments for conservation in environmental policy are well understood. Yet, there is little evidence comparing the effectiveness of these instruments, especially when considering water resource management. We exploit a rich panel of residential water consumption to examine heterogeneous responses to both price and non-price conservation policies during times of drought while controlling for unobservable household characteristics. Our empirical models suggest that the burden of pricing policies fall disproportionately on low-income households and fail to reduce consumption among households who generally are large consumers of water. However, prescriptive policies such as restrictions on outdoor water use result in uniform responses across income classes while simultaneously targeting reductions from households with irrigation systems or historically high consumption.

download in pdf format
   (382 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w20466

Published: 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. citation courtesy of

Users who downloaded this paper also downloaded* these:
Lavy, Ebenstein, and Roth w20648 The Impact of Short Term Exposure to Ambient Air Pollution on Cognitive Performance and Human Capital Formation
Ito and Sallee w20500 The Economics of Attribute-Based Regulation: Theory and Evidence from Fuel-Economy Standards
Cabral, Geruso, and Mahoney w20470 Do Larger Health Insurance Subsidies Benefit Patients or Producers? Evidence from Medicare Advantage
Reyes w20366 Lead Exposure and Behavior: Effects on Antisocial and Risky Behavior among Children and Adolescents
Rose w20494 The Bond Market: An Inflation-Targeter's Best Friend
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us