The Persistence of Treatment Effects with Norm-Based Policy Instruments: Evidence from a Randomized Environmental Policy Experiment

• DOI: 10.1257/aer.101.3.318
• Publication Date: 2011-06-01T15:20:52Z
• Authors: Paul J Ferraro; Juan Jose Miranda; Michael K Price
• Keywords: Empirical evidence; Persistence (discontinuity)

Policymakers increasingly use norm-based messages to promote conservation efforts. Despite the apparent success of such strategies, empirical analyses have thus far focused exclusively on short-run effects. From a policy perspective, however, whether and how strategies influence behavior in long-run is equal interest. We partner with metropolitan water utility implement natural field experiment examining effect longer-run patterns use. Empirical results are striking. While appeals pro-social preferences affect use, only augmented social comparisons lasting impact demand.