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Valuing smart meters

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  • Pepermans, Guido

Abstract

This paper assesses to what extent consumers are willing to make use of the features and capabilities offered by smart meters. Via a choice experiment households are offered the choice between a set of smart meters, described by six attributes: impact on the comfort and privacy level, functionality, visibility, cost savings, and investment outlay.

Suggested Citation

  • Pepermans, Guido, 2014. "Valuing smart meters," Energy Economics, Elsevier, vol. 45(C), pages 280-294.
    • Handle: RePEc:eee:eneeco:v:45:y:2014:i:c:p:280-294
    DOI: 10.1016/j.eneco.2014.07.011
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    7. Miwa Nakai & Victor von Loessl & Heike Wetzel, 2022. "Preferences for dynamic electricity tariffs: A comparison of households in Germany and Japan," MAGKS Papers on Economics 202213, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
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    9. Coelho, Vitor N. & Weiss Cohen, Miri & Coelho, Igor M. & Liu, Nian & Guimarães, Frederico Gadelha, 2017. "Multi-agent systems applied for energy systems integration: State-of-the-art applications and trends in microgrids," Applied Energy, Elsevier, vol. 187(C), pages 820-832.
    10. Buckley, Penelope, 2020. "Prices, information and nudges for residential electricity conservation: A meta-analysis," Ecological Economics, Elsevier, vol. 172(C).
    11. Tu, Gengyang & Faure, Corinne & Schleich, Joachim & Guetlein, Marie-Charlotte, 2021. "The heat is off! The role of technology attributes and individual attitudes in the diffusion of Smart thermostats – findings from a multi-country survey," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    12. Ladenburg, Jacob & Jensen, Kirsten Lund & Lodahl, Christa & Keles, Dogan, 2022. "Testing for non-linear willingness to accept compensation for controlled electricity switch-offs using choice experiments," Energy, Elsevier, vol. 238(PB).
    13. Srivastava, A. & Van Passel, S. & Valkering, P. & Laes, E.J.W., 2021. "Power outages and bill savings: A choice experiment on residential demand response acceptability in Delhi," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    14. Wong, Jason Chun Yu & Blankenship, Brian & Urpelainen, Johannes & Balani, Kanika & Ganesan, Karthik & Bharadwaj, Kapardhi, 2022. "Understanding electricity billing preferences in rural and urban India: Evidence from a conjoint experiment," Energy Economics, Elsevier, vol. 106(C).
    15. Dongnyok Shim & Seung Wan Kim & Jörn Altmann, 2018. "Strategic management of residential electric services in the competitive market: Demand-oriented perspective," Energy & Environment, , vol. 29(1), pages 49-66, February.
    16. Le Ray, G. & Pinson, P., 2020. "The ethical smart grid: Enabling a fruitful and long-lasting relationship between utilities and customers," Energy Policy, Elsevier, vol. 140(C).
    17. Bansal, Prateek & Kumar, Rajeev Ranjan & Raj, Alok & Dubey, Subodh & Graham, Daniel J., 2021. "Willingness to pay and attitudinal preferences of Indian consumers for electric vehicles," Energy Economics, Elsevier, vol. 100(C).
    18. Strong, Derek Ryan, 2017. "The Early Diffusion of Smart Meters in the US Electric Power Industry," Thesis Commons 7zprk, Center for Open Science.
    19. Ruokamo, Enni & Kopsakangas-Savolainen, Maria & Meriläinen, Teemu & Svento, Rauli, 2019. "Towards flexible energy demand – Preferences for dynamic contracts, services and emissions reductions," Energy Economics, Elsevier, vol. 84(C).
    20. Gordon Rausser & Wadim Strielkowski & Dalia Å treimikienÄ—, 2018. "Smart meters and household electricity consumption: A case study in Ireland," Energy & Environment, , vol. 29(1), pages 131-146, February.
    21. Bernadeta Gołębiowska, 2020. "Preferences for demand side management—a review of choice experiment studies," Working Papers 2020-05, Faculty of Economic Sciences, University of Warsaw.
    22. Di Foggia, Giacomo, 2018. "Smart metering projects: an interpretive framework for successful implementation," OSF Preprints zcf34, Center for Open Science.

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    More about this item

    Keywords

    Choice experiment; Smart meter; Conditional logit model; Random parameter logit model; Willingness to pay;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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