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Man vs. Machine : Technological Promise and Political Limits of Automated Regulation Enforcement

Author

Listed:
  • Browne, Oliver R.

    (The Brattle Group)

  • Gazze, Ludovica

    (University of Warwick)

  • Greenstone, Michael

    (University of Chicago Harris School of Public Policy)

  • Olga Rostapshova

    (The University of Chicago)

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.

Suggested Citation

  • Browne, Oliver R. & Gazze, Ludovica & Greenstone, Michael & Olga Rostapshova, 2022. "Man vs. Machine : Technological Promise and Political Limits of Automated Regulation Enforcement," The Warwick Economics Research Paper Series (TWERPS) 1440, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:1440
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    2. Vieira, João Pedro & Dahis, Ricardo & Assunção, Juliano, 2023. "From Deforestation to Reforestation: The Role of General Deterrence in Changing Farmers' Behavior," SocArXiv vqpkm, Center for Open Science.
    3. Vollaard, Ben & van Soest, Daan, 2024. "Punishment to promote prosocial behavior: a field experiment," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).

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    More about this item

    Keywords

    Field Experiment ; Automated Enforcement ; Remote Sensing ; Water Conservation JEL Codes: Q25 ; K42;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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