Complementarity (molecular biology)

Habitat

Ecology

Biology

Environmental economics

Water conservation

Water resource management

Economics

Water consumption

Water resources

Business

Environmental planning

Genetics

Landscaping

Threatened species

Public economics

Environmental resource management

Water use

Sociology

Environmental science

Consumption (sociology)

Natural resource economics

Social science

American Economic Journal Economic Policy

Social interactions are widely understood to influence consumer decisions in many choice settings. This paper identifies causal peer effects in residential water conservation during the summer using variation from movers. We classify high-resolution remote sensing images to provide evidence that conversions of green landscaping to dry landscaping are a primary determinant of the reductions in water consumption. We also find suggestive evidence that without a price signal, peer effects are muted, indicating a possible complementarity between information and prices. These results inform water use policy in many areas of the world threatened by recurring drought conditions. (JEL D12, L95, Q25, Q54, Z13)

Peer Effects in Residential Water Conservation: Evidence from Migration