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

46 Pages Posted: 8 Sep 2014 Last revised: 4 Jun 2021

See all articles by Casey Wichman

Casey Wichman

University of Maryland

Laura O. Taylor

North Carolina State University

Roger H. von Haefen

North Carolina State University - Department of Agricultural & Resource Economics

Date Written: September 2014

Abstract

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.

Suggested Citation

Wichman, Casey and Taylor, Laura O. and von Haefen, Roger H., Conservation Policies: Who Responds to Price and Who Responds to Prescription? (September 2014). Available at SSRN: https://ssrn.com/abstract=2492976

Casey Wichman (Contact Author)

University of Maryland ( email )

College Park
College Park, MD 20742
United States

Laura O. Taylor

North Carolina State University ( email )

Box 8109
3332 Nelson Hall
Raleigh, NC 27695-8109
United States

Roger H. Von Haefen

North Carolina State University - Department of Agricultural & Resource Economics ( email )

Box 8109
3332 Nelson Hall
Raleigh, NC 27695-8109
United States
(919) 515-8946 (Phone)
(919) 515-1824 (Fax)

HOME PAGE: http://www.ag-econ.ncsu.edu/faculty/vonHaefen/vita.pdf

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
9
Abstract Views
342
PlumX Metrics