Addressing Water Sustainability: Lessons from Behavioral Economics
Peer Reviewed
Date issued
December 2025
Subject
Water and Sanitation;
Behavioral Economics;
Sustainability;
Behavioral Science;
Water Consumption;
Water Conservation;
Water Use;
Drought;
Water Resource;
Natural Resources Management;
Social Norm
JEL code
D91 - Intertemporal Household Choice • Life Cycle Models and Saving;
I31 - General Welfare, Well-Being;
Q25 - Water;
Q56 - Environment and Development • Environment and Trade • Sustainability • Environmental Accounts and Accounting • Environmental Equity • Population Growth
Category
Monographs
Unsustainable water consumption practices are a growing concern, especially as climate change threatens global water resources. Immediate action is needed to promote conservation and ensure long-term availability. Addressing this challenge requires a broad understanding of structural and behavioral factors that influence water consumption. This document examines how cognitive and behavioral biases affect water use, outlines key challenges, and summarizes approaches for promoting sustainable practices. Moreover, it reviews global initiatives, with a focus on Latin America and the Caribbean, highlighting behaviorally informed interventions that contribute to enhancing water sustainability.
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