Research / BFI Working PaperNov 30, 2022

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

Oliver R. Browne, Ludovica Gazze, Michael Greenstone, Olga Rostapshova

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.

More Research From These Scholars

BFI Working Paper Aug 29, 2023

Does the Squeaky Wheel Get More Grease? The Direct and Indirect Effects of Citizen Participation on Environmental Governance in China

Mark Buntaine, Michael Greenstone, Guojun He, Mengdi Liu, Shaoda Wang, Bing Zhang
Topics:  Energy & Environment
BFI Working Paper Feb 15, 2021

China’s War on Pollution: Evidence from the First Five Years

Michael Greenstone, Guojun He, Shanjun Li, Eric Zou
Topics:  Energy & Environment
BFI Working Paper Jan 1, 2016

Will We Ever Stop Using Fossil Fuels?

Thomas Covert, Michael Greenstone, Christopher R. Knittel
Topics:  Energy & Environment, Financial Markets, Monetary Policy, Tax & Budget, Health care