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 on this topic

BFI Working Paper·Nov 5, 2026

The Economics of Transitioning Away from Fossil Fuels: A Contribution to the COP30 Presidency Roadmap

Robin Burgess and Michael Greenstone
Topics: Energy & Environment
BFI Working Paper·Nov 2, 2026

Green Tastes, Beliefs, and Portfolios: Evidence from Synthetic Investors

Xindi He and Lubos Pastor
Topics: Energy & Environment, Financial Markets
BFI Working Paper·Oct 21, 2026

Green Subsidies with Demand Distortions

Susanna B. Berkouwer and Joshua Dean
Topics: Energy & Environment