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Reducing household electricity demand through smart metering: The role of improved information about energy saving

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  • Carroll, James
  • Lyons, Seán
  • Denny, Eleanor

Abstract

The international roll out of residential smart meters has increased considerably in recent years. The improved consumption feedback provided, and in particular, the installation of in-house displays, has been shown to significantly reduce residential electricity demand in some international trials. This paper attempts to uncover the underlying drivers of such information-led reductions by exploring two research questions. First, does feedback improve a household's stock of information about potential energy reducing behaviours? And second, do improvements in such information help explain the demand reductions associated with the introduction of smart metering and time-of-use tariffs? Data is from a randomised controlled smart metering trial (Ireland) which also collected extensive information on household attitudes towards energy conservation and self-reported stocks of information related to energy saving. As with previous results in Ireland, we find that participation in a smart metering programme with time-of-use tariffs significantly reduces demand. Although treated households also increased their self-reported energy-reducing information, such improvements are not correlated with demand reductions in the short-run. Given this result, it is possible that feedback and other information provided in the context of smart metering are mainly effective in reducing and shifting demand because they act as a reminder and motivator.

Suggested Citation

  • Carroll, James & Lyons, Seán & Denny, Eleanor, 2014. "Reducing household electricity demand through smart metering: The role of improved information about energy saving," Energy Economics, Elsevier, vol. 45(C), pages 234-243.
  • Handle: RePEc:eee:eneeco:v:45:y:2014:i:c:p:234-243
    DOI: 10.1016/j.eneco.2014.07.007
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    References listed on IDEAS

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    More about this item

    Keywords

    Residential electricity demand; Smart meters; Consumption feedback; Household knowledge; Conservation motivations;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D10 - Microeconomics - - Household Behavior - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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