Every Drop Counts: A Water Conservation Experiment with Hotel Guests

21 Pages Posted: 5 Jun 2018

See all articles by Hayeon Joo

Hayeon Joo

Sogang University

Jungmin Lee

Seoul National University

Sangkon Park

Korean Culture & Tourism Institute (KCTI)

Date Written: July 2018

Abstract

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

Suggested Citation

Joo, Hayeon and Lee, Jungmin and Park, Sangkon, Every Drop Counts: A Water Conservation Experiment with Hotel Guests (July 2018). Economic Inquiry, Vol. 56, Issue 3, pp. 1788-1808, 2018, Available at SSRN: https://ssrn.com/abstract=3188592 or http://dx.doi.org/10.1111/ecin.12563

Hayeon Joo (Contact Author)

Sogang University ( email )

Jungmin Lee

Seoul National University ( email )

Kwanak-gu
Seoul, 151-742
Korea, Republic of (South Korea)

Sangkon Park

Korean Culture & Tourism Institute (KCTI) ( email )

154, Geumnanghwaro (827 Banghwa3-dong)
Gangseo-gu
Seoul, 07511
Korea, Republic of (South Korea)

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