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Man vs. machine : technological promise and political limits of automated regulation enforcement

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Browne, Oliver R., Gazze, Ludovica, Greenstone, Michael and Rostapshova, Olga (2022) Man vs. machine : technological promise and political limits of automated regulation enforcement. Working Paper. Coventry: University of Warwick. Department of Economics. Warwick economics research papers series (WERPS) (1440). (Unpublished)

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Official URL: https://warwick.ac.uk/fac/soc/economics/research/w...

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Abstract

New technologies allow perfect detection of environmental violations at near-zero marginal cost, but take-up is low. We conducted a field experiment to evaluate enforcement of water conservation rules with smart meters in Fresno, CA. Households were randomly assigned combinations of enforcement method (automated or in-person inspections) and fines. Automated enforcement increased households’ punishment rates from 0.1 to 14%, decreased water use by 3%, and reduced violations by 17%, while higher fine levels had little effect. However, automated enforcement also increased customer complaints by 1,102%, ultimately causing its cancellation and highlighting that political considerations limit technological solutions to enforcement challenges.

Item Type: Working or Discussion Paper (Working Paper)
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
T Technology > TD Environmental technology. Sanitary engineering
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Technological innovations, Water conservation , Water-meters , Water-meters -- Automatic control , Environmental economics
Series Name: Warwick economics research papers series (WERPS)
Publisher: University of Warwick. Department of Economics
Place of Publication: Coventry
ISSN: 0083-7350
Official Date: December 2022
Dates:
DateEvent
December 2022Available
9 December 2022Accepted
Number: 1440
Institution: University of Warwick
Status: Not Peer Reviewed
Publication Status: Unpublished
Access rights to Published version: Open Access (Creative Commons)
Description:

This paper also appears as CAGE Discussion paper 646

RIOXX Funder/Project Grant:
Project/Grant IDRIOXX Funder NameFunder ID
UNSPECIFIEDLaura and John Arnold Foundationhttp://dx.doi.org/10.13039/100009827
UNSPECIFIEDSmith Richardson Foundationhttp://dx.doi.org/10.13039/100001314
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