SALIENCE BIAS AND SPILLOVER EFFECTS IN WATER CONSERVATION.

Abstract

This paper explores the phenomenon of salience bias in water conservation, using data from an ongoing field experiment in Singapore. Firstly, I lay out a model that captures salience bias and spillover effects between two goods. Next, I estimate the effect of real-time feedback in showers on water consumption during showers using a regression discontinuity approach. The main result of this paper is that feedback reduces water consumption per shower by 4.67 liters, or 18.5%. Finally, I analyze survey data to investigate if there is indirect evidence for perceived spillover effects in salience bias. I find that there is mixed evidence of perceived spillover effects.