Focusing on two different European institutional contexts, a stated preference approach is adopted to elicit the willingness to save water under three alternative incentive policies: a water price increase, monetary reward, and symbolic prize. In addition, two water scarcity scenarios, a ‘critical’ and a ‘regular’ scenario, are devised to analyze how information on water scarcity moderates the effect of incentives. Empirical results show that users become sensitive to monetary incentives (while they remain insensitive to non-monetary ones) when water is scarce. Batteries of pre-tests on the sample and robustness checks on the results strengthen the reliability of our findings and partially circumvent concerns related to the use of a stated preference approach. The study adds to the literature on the efficacy of economic incentives in the water sector and the role of local factors in explaining water users’ response.

Incentives to water conservation under scarcity: Comparing price and reward effects through stated preferences

Garrone P.;Grilli L.;
2020-01-01

Abstract

Focusing on two different European institutional contexts, a stated preference approach is adopted to elicit the willingness to save water under three alternative incentive policies: a water price increase, monetary reward, and symbolic prize. In addition, two water scarcity scenarios, a ‘critical’ and a ‘regular’ scenario, are devised to analyze how information on water scarcity moderates the effect of incentives. Empirical results show that users become sensitive to monetary incentives (while they remain insensitive to non-monetary ones) when water is scarce. Batteries of pre-tests on the sample and robustness checks on the results strengthen the reliability of our findings and partially circumvent concerns related to the use of a stated preference approach. The study adds to the literature on the efficacy of economic incentives in the water sector and the role of local factors in explaining water users’ response.
Demand management strategies, Economic incentives, Individual behavior, Stated preferences, Water conservation, Water scarcity
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11311/1133696
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