Testing the waters in Korea: Nudging toward the tap

Abstract

The negative internalities of personal cost and the externalities of environmental sustainability are important factors in the decision to purchase bottled water. Given the provision of safe and virtually costless tap water by the government, a preference for bottled water must be explained by an individual’s taste and biases. This research examines the extent of those tastes and biases in the context of South Korea, where the tap water is globally recognized to be of high quality, yet the population continues to consume bottled water at a sustained rate of growth. A convenience sample of university students were subjects in an experiment and survey to understand the behavior. The results show that the taste preferences are negligible, yet biases persist. Nudge policy opportunities are discussed to discourage bottled water consumption.