Water Consumption: Price, Information, Reference Points and Nudges

Abstract:

Due to severe water stress, the South East of England is currently undergoing a massive programme of water meter installation, known as Universal Metering Program (UMP), involving the installation of half a million new water meters. In this project, we analyse the impact of the UMP on water consumption. In particular, we investigate the behavioural response of consumers to several different elements of the programme, including the introduction of metered charge, the rolling out of an information campaign raising awareness about the ecological impact of water consumption and suggesting simple ways to cut the water bill, and the introduction of colour-coded bills comparing consumption across households.