Takeup, Neighbor Effects, and Environmental Justice in Water-Wise Landscaping Incentive Programs

In the face of historic drought in the U.S.~West, the largest reduction in water consumption households can make is by limiting their outdoor water use. Governments and water agencies throughout the region offer rebates to remove thirsty grass lawns and replace them with drought-friendly landscaping. Using variation in rebate generosity across space and time, I estimate the demand for these rebates, paying close attention to which demographics are more likely to be adopters. Additionally, I assess the extent to which a household's takeup of the rebate is influenced by the past takeup of their neighbors and I quantify differential rates of application rejection.