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Reducing Electricity Demand through Smart Metering: The Role of Improved Household Knowledge

Author

Listed:
  • James Carroll

    (Department of Economics, Trinity College, Dublin)

  • Se n Lyons

    (Economic and Social Research Institute)

  • Eleanor Denny

    (Department of Economics, Trinity College, Dublin)

Abstract

The international rollout 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 knowledge of energy reducing behaviors? And second, do knowledge improvements explain demand reductions? Data is from a randomized controlled smart metering trial (Ireland) which also collected extensive information on household attitudes towards and knowledge of electricity use. Results show that feedback significantly increases a household's knowledge but improvements are not correlated with observed demand reductions. Increasing the level of knowledge ceteris paribus is therefore unlikely to bring short-run demand reductions in residential electricity markets. Given this result, it is possible that feedback acts mainly as a reminder and motivator, rather than an educational tool

Suggested Citation

  • James Carroll & Se n Lyons & Eleanor Denny, 2013. "Reducing Electricity Demand through Smart Metering: The Role of Improved Household Knowledge," Trinity Economics Papers tep0313, Trinity College Dublin, Department of Economics.
    • Handle: RePEc:tcd:tcduee:tep0313
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    File URL: http://www.tcd.ie/Economics/TEP/2013/TEP0313.pdf
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    References listed on IDEAS

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    Cited by:

    1. Serra, Daniele & Mardero, Daniele & Di Stefano, Luca & Grillo, Samuele, 2021. "Post-metering value-added services for low voltage electricity users: Lessons learned from the Italian experience of CHAIN 2," Applied Energy, Elsevier, vol. 304(C).
    2. McCoy, Daire & Lyons, Sean, 2014. "Better information on residential energy use may deter investment in efficiency: case study of a smart metering trial," MPRA Paper 55402, University Library of Munich, Germany.

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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:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • 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
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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