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California has experienced one of the most intense and prolonged droughts in its history in the last decade, prompting the state government to undertake a series of policy responses. This paper compares the impact of the 2015 urban water-use reduction mandate with respect to pre-policy voluntary conservation efforts and post-policy water consumption trends by examining utility-level water demand dynamics of the Metropolitan Water District in Southern California. The findings overall indicate that despite voluntary measures resulting in a gradual decline in urban water-use, the introduction of the regulatory stick achieved swift reduction targets that remained even after removal of the mandatory policy.

Carrot or stick: what motivates urban water consumption? Evidence from Southern California