Every Drop Counts: A Water Conservation Experiment with Hotel Guests
21 Pages Posted: 5 Jun 2018
Date Written: July 2018
We implement a field experiment with hotel guests to measure the effects of nonprice interventions on water conservation and customer satisfaction. In hotels, guests have no direct pecuniary incentive to conserve water, as consumers do at home, where they pay their own water bills. Because hotels earn greater profits when they manage to convince guests to conserve, guests may be suspicious of a hotel's stated social goal of water conservation. By implementing behavioral interventions that address these challenges, we find that our nudges can induce guests to reduce their water consumption, even when no direct monetary incentive is provided. Using post‐stay customer surveys, we detected no adverse effects on customer satisfaction due to these nudges.
JEL Classification: D12, I31, Q41, Q50
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