IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v53y2013icp229-239.html
   My bibliography  Save this article

Customer value of smart metering: Explorative evidence from a choice-based conjoint study in Switzerland

Author

Listed:
  • Kaufmann, Simon
  • Künzel, Karoline
  • Loock, Moritz

Abstract

Implementing smart metering is an important field for energy policy to successfully meet energy efficiency targets. From an integrated social acceptance and customer-perceived value theory perspective we model the importance of customer value of smart metering in this regard. We further shape the model on a choice-based conjoint experiment with Swiss private electricity customers. The study finds that overall customers perceive a positive value from smart metering and are willing to pay for it. Further, based on a cluster analysis of customers’ value perceptions, we identify four customer segments, each with a distinct value perception profile for smart metering. We find that energy policy and management should integrate a solid understanding of customer value for smart metering in their initiatives and consider different smart metering market segments within their measures.

Suggested Citation

  • Kaufmann, Simon & Künzel, Karoline & Loock, Moritz, 2013. "Customer value of smart metering: Explorative evidence from a choice-based conjoint study in Switzerland," Energy Policy, Elsevier, vol. 53(C), pages 229-239.
    • Handle: RePEc:eee:enepol:v:53:y:2013:i:c:p:229-239
    DOI: 10.1016/j.enpol.2012.10.072
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421512009573
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2012.10.072?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Honebein, Peter C. & Cammarano, Roy F. & Donnelly, Kat A., 2009. "Will Smart Meters Ripen or Rot? Five First Principles for Embracing Customers as Co-Creators of Value," The Electricity Journal, Elsevier, vol. 22(5), pages 39-44, June.
    2. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    3. Faruqui, Ahmad & Harris, Dan & Hledik, Ryan, 2010. "Unlocking the [euro]53 billion savings from smart meters in the EU: How increasing the adoption of dynamic tariffs could make or break the EU's smart grid investment," Energy Policy, Elsevier, vol. 38(10), pages 6222-6231, October.
    4. Chapman, Bruce & Faruqui, Ahmad & Hansen, Dan & Holmes, Chris, 2001. "Hedging Exposure to Volatile Retail Electricity Prices," The Electricity Journal, Elsevier, vol. 14(5), pages 33-38, June.
    5. Neenan, Bernard & Hemphill, Ross C., 2008. "Societal Benefits of Smart Metering Investments," The Electricity Journal, Elsevier, vol. 21(8), pages 32-45, October.
    6. Clastres, Cédric, 2011. "Smart grids: Another step towards competition, energy security and climate change objectives," Energy Policy, Elsevier, vol. 39(9), pages 5399-5408, September.
    7. Loock, Moritz, 2012. "Going beyond best technology and lowest price: on renewable energy investors’ preference for service-driven business models," Energy Policy, Elsevier, vol. 40(C), pages 21-27.
    8. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, January.
    9. David Martín Ruiz & Carmen Barroso Castro & Enrique Martín Armario, 2007. "Explaining Market Heterogeneity in Terms of Value Perceptions," The Service Industries Journal, Taylor & Francis Journals, vol. 27(8), pages 1087-1110, December.
    10. Wayne S. DeSarbo & Kamel Jedidi & Indrajit Sinha, 2001. "Customer value analysis in a heterogeneous market," Strategic Management Journal, Wiley Blackwell, vol. 22(9), pages 845-857, September.
    11. Darby, Sarah J., 2012. "Metering: EU policy and implications for fuel poor households," Energy Policy, Elsevier, vol. 49(C), pages 98-106.
    12. Sheth, Jagdish N. & Newman, Bruce I. & Gross, Barbara L., 1991. "Why we buy what we buy: A theory of consumption values," Journal of Business Research, Elsevier, vol. 22(2), pages 159-170, March.
    13. Herter, Karen, 2007. "Residential implementation of critical-peak pricing of electricity," Energy Policy, Elsevier, vol. 35(4), pages 2121-2130, April.
    14. Cédric Clastres, 2011. "Smart grids : Another step towards competition, energy security and climate change objectives," Post-Print halshs-00617702, HAL.
    15. Ahmad Faruqui & Sanem Sergici, 2010. "Household response to dynamic pricing of electricity: a survey of 15 experiments," Journal of Regulatory Economics, Springer, vol. 38(2), pages 193-225, October.
    16. Giordano, Vincenzo & Fulli, Gianluca, 2012. "A business case for Smart Grid technologies: A systemic perspective," Energy Policy, Elsevier, vol. 40(C), pages 252-259.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Buryk, Stephen & Mead, Doug & Mourato, Susana & Torriti, Jacopo, 2015. "Investigating preferences for dynamic electricity tariffs: The effect of environmental and system benefit disclosure," Energy Policy, Elsevier, vol. 80(C), pages 190-195.
    2. Friedrich Chasin & Ute Paukstadt & Patrick Ullmeyer & Jörg Becker, 2020. "Creating Value From Energy Data: A Practitioner’s Perspective on Data-Driven Smart Energy Business Models," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 72(4), pages 565-597, October.
    3. Lopes, Marta A.R. & Henggeler Antunes, Carlos & Janda, Kathryn B. & Peixoto, Paulo & Martins, Nelson, 2016. "The potential of energy behaviours in a smart(er) grid: Policy implications from a Portuguese exploratory study," Energy Policy, Elsevier, vol. 90(C), pages 233-245.
    4. Clastres, Cédric & Khalfallah, Haikel, 2021. "Dynamic pricing efficiency with strategic retailers and consumers: An analytical analysis of short-term market interactions," Energy Economics, Elsevier, vol. 98(C).
    5. Cédric Clastres & Haikel Khalfallah, 2021. "Dynamic pricing efficiency with strategic retailers and consumers: An analytical analysis of short-term market interactions," Post-Print hal-03193212, HAL.
    6. Cédric Clastres & Haikel Khalfallah, 2020. "Retailers' strategies facing demand response and markets interactions," Working Papers hal-03167543, HAL.
    7. Pepermans, Guido, 2014. "Valuing smart meters," Energy Economics, Elsevier, vol. 45(C), pages 280-294.
    8. Claire Bergaentzlé & Cédric Clastres, 2013. "Demand side management in an integrated electricity market: what are the impacts on generation and environmental concerns ?," Post-Print halshs-00839116, HAL.
    9. Strong, Derek Ryan, 2017. "The Early Diffusion of Smart Meters in the US Electric Power Industry," Thesis Commons 7zprk, Center for Open Science.
    10. He, Yongxiu & Wang, Bing & Wang, Jianhui & Xiong, Wei & Xia, Tian, 2012. "Residential demand response behavior analysis based on Monte Carlo simulation: The case of Yinchuan in China," Energy, Elsevier, vol. 47(1), pages 230-236.
    11. Yanshan Yu & Jin Yang & Bin Chen, 2012. "The Smart Grids in China—A Review," Energies, MDPI, vol. 5(5), pages 1-18, May.
    12. Maarten Wolsink, 2020. "Framing in Renewable Energy Policies: A Glossary," Energies, MDPI, vol. 13(11), pages 1-31, June.
    13. Fatih Issi & Orhan Kaplan, 2018. "The Determination of Load Profiles and Power Consumptions of Home Appliances," Energies, MDPI, vol. 11(3), pages 1-18, March.
    14. Yang, Liu & Dong, Ciwei & Wan, C.L. Johnny & Ng, Chi To, 2013. "Electricity time-of-use tariff with consumer behavior consideration," International Journal of Production Economics, Elsevier, vol. 146(2), pages 402-410.
    15. Bartusch, Cajsa & Alvehag, Karin, 2014. "Further exploring the potential of residential demand response programs in electricity distribution," Applied Energy, Elsevier, vol. 125(C), pages 39-59.
    16. Kayo MURAKAMI & Takanori IDA, 2019. "Deregulation and status quo bias: Evidence from stated and revealed switching behaviors in the electricity market in Japan," Discussion papers e-19-001, Graduate School of Economics , Kyoto University.
    17. Takanori Ida & Kayo Murakami & Makoto Tanaka, 2012. "Keys to Smart Home Diffusion: A Stated Preference Analysis of Smart Meters, Photovoltaic Generation, and Electric/Hybrid Vehicles," Discussion papers e-11-011, Graduate School of Economics Project Center, Kyoto University.
    18. Floh, Arne & Zauner, Alexander & Koller, Monika & Rusch, Thomas, 2014. "Customer segmentation using unobserved heterogeneity in the perceived-value–loyalty–intentions link," Journal of Business Research, Elsevier, vol. 67(5), pages 974-982.
    19. Kris Kessels & Carolien Kraan & Ludwig Karg & Simone Maggiore & Pieter Valkering & Erik Laes, 2016. "Fostering Residential Demand Response through Dynamic Pricing Schemes: A Behavioural Review of Smart Grid Pilots in Europe," Sustainability, MDPI, vol. 8(9), pages 1-21, September.
    20. Nilsson, Anders & Lazarevic, David & Brandt, Nils & Kordas, Olga, 2018. "Household responsiveness to residential demand response strategies: Results and policy implications from a Swedish field study," Energy Policy, Elsevier, vol. 122(C), pages 273-286.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:53:y:2013:i:c:p:229-239. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.