The Review of Economics and Statistics Vol. 107 No. 4 2025
Man vs. Machine: Technological Promise and Political Limits of Automated Regulation Enforcement
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 summer 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.
- DOI
- 10.1162/rest_a_01316
- Volume
- 107
- Issue
- 4
- Pages
- 1136-1148
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref