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The Impact of Sub-Metering on Condominium Electricity Demand

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  • Donald Dewees
  • Trevor Tombe

Abstract

With a substantial fraction of the population insulated from energy price signals in bulk-metered apartment and condominium buildings, some jurisdictions are exploring mandatory metering of individual suites to encourage electricity conservation. This study finds that sub-metering in a Toronto condominium building reduces electricity usage by 20 percent. However, the costs of metering and customer service largely offset the electricity cost savings, and so the private net benefits are small or negative. The social net benefits depend strongly on the value assigned to externalities from generation. Social net benefits in our baseline results are closer to 5 percent than to 20 percent, and could be negative in many buildings.

Suggested Citation

  • Donald Dewees & Trevor Tombe, 2011. "The Impact of Sub-Metering on Condominium Electricity Demand," Canadian Public Policy, University of Toronto Press, vol. 37(4), pages 435-457, December.
    • Handle: RePEc:cpp:issued:v:37:y:2011:i:4:p:435-457
    DOI: 10.3138/cpp.37.4.435
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    References listed on IDEAS

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    1. Donald N. Dewees, 2010. "The Price Isn't Right: The Need for Reform in Consumer Electricity Pricing," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 124, January.
    2. Donald N. Dewees, 2008. "Pollution and the Price of Power," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 81-100.
    3. Peter C. Reiss & Matthew W. White, 2005. "Household Electricity Demand, Revisited," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(3), pages 853-883.
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    Cited by:

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    2. Brewer, Dylan, 2022. "Equilibrium sorting and moral hazard in residential energy contracts," Journal of Urban Economics, Elsevier, vol. 129(C).

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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