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ARTICLE · 04 AUGUST 2015

The Problem With Using Economic Incentives To Reduce Water Use? People

Earlier this month, I noted that demand side management policies need to take human behavior into account if they are going to be successful.

United StatesEnvironment

Earlier this month, I noted that demand side management policies need to take human behavior into account if they are going to be successful.  The same is apparently true for policies to reduce water consumption in drought-stricken areas.  According to the Los Angeles Times, the Metropolitan Water District of Southern California provides economic incentives for certain water conservation measures, including installing water efficient toilets and ripping out grass to install landscaping that does not consume as much water.  All good, right?

Well, apparently the water savings from installing water-efficient plumbing is about 10 times greater than from removing grass from lawns.  However, having natural landscaping has now become the latest must-have among SoCal landowners, and everyone is applying for the rebate to remove their grass, thus rapidly exhausting the MWD budget for these types of rebates.  According to the Times, MWD General Manager Jeffrey Kightlinger

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