Do you perceive interdependencies among human activities related to water? Drivers and effects on preferences for participation and regulation

Environmental transitions face the challenge of incentivizing change and governing complexity. Changing perceptions is critical to address these challenges. Perceptions shape policy and directly determine the potential and pathway of environmental transitions. While often addressing risk perception, economists rarely study perceptions in regard of policy process and change. Social-Ecological System components interdependencies drive dynamics and potential for sustainability. We elicit the perceptions of these interdependencies, offering a comprehensive understanding of the mechanisms at stake by measuring three dimensions of perceptions: likelihood, intensity and polarization. Then, we investigate the mechanisms determining the perceptions, and the association of interdependencies perception with policy preferences. Empirically, human activities related to water serve as a case for investigation. We develop an original measurement of perception using a survey that puts the emphasis on the perceived interdependencies between water activities, while most of the literature measures the importance attributed to each activities. We focus on the 19 principal water-related human activities in the Geneva region, i.e., a system of 342 relations. Results show important variations in perception. This variation depends on individuals characteristics, and nature of water-related activities. Higher perceptions environmental externalities associate with preferences for broader participation and more stringent policy instruments, like precautionary principle.