Nudging Sustainable Consumption of Water

Abstract: Nearly fifty per cent of the world population experience water scarcity for atleast one month in a year. Even the water rich countries are facing challenges due to over use, pollution and climate change. Traditionally, economists have advocated for policy measures such as regulation and Pigouvian taxes to address the issue of water scarcity. However, these approaches may not be practical for an essential resource like water. Behavioural science offers a complementary strategy - nudges to encourage more efficient water consumption without restricting individual choices or imposing heavy economic burdens. Field experiments have found that nudges can promote water efficient behaviour. This paper explores the theoretical foundations of nudges, reviews empirical evidence on their effectiveness in promoting sustainable water use, and discusses potential policy implications. The study also explores how insights from these field experiences can be leveraged to promote efficient water consumption behaviour in Mumbai