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Better information on residential energy use may deter investment in efficiency: case study of a smart metering trial

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  • McCoy, Daire
  • Lyons, Sean

Abstract

Smart metering allows electricity utilities to provide consumers with better information on their energy usage and to apply time of use tariffs. These measures have been shown to reduce electricity consumption and induce time-shifting of demand. Less is known about how they affect residential energy efficiency investment behaviour. Using data from a randomised-controlled trial on a sample of 2500 Irish consumers we show that exposure to time of use pricing and better information over a 12 month period can have the unintended effect of reducing investment in energy efficiency measures within the home.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:55402
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    File URL: https://mpra.ub.uni-muenchen.de/55402/1/MPRA_paper_55402.pdf
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    References listed on IDEAS

    as
    1. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-362, March.
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    3. Faruqui, Ahmad & Sergici, Sanem & Sharif, Ahmed, 2010. "The impact of informational feedback on energy consumption—A survey of the experimental evidence," Energy, Elsevier, vol. 35(4), pages 1598-1608.
    4. Hunt Allcott & Michael Greenstone, 2012. "Is There an Energy Efficiency Gap?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 3-28, Winter.
    5. Blumstein, Carl & Krieg, Betsy & Schipper, Lee & York, Carl, 1980. "Overcoming social and institutional barriers to energy conservation," Energy, Elsevier, vol. 5(4), pages 355-371.
    6. Henry Ruderman & Mark D. Levine & James E. McMahon, 1987. "The Behavior of the Market for Energy Efficiency in Residential Appliances Including Heating and Cooling Equipment," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 101-124.
    7. Jaffe, Adam B. & Stavins, Robert N., 1994. "The energy-efficiency gap What does it mean?," Energy Policy, Elsevier, vol. 22(10), pages 804-810, October.
    8. 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.
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    Cited by:

    1. Curtis, John & Devitt, Niamh & di Cosmo, Valeria & Farrell, Niall & FitzGerald, John & Hyland, Marie & Lynch, Muireann & Lyons, Sean & McCoy, Daire & Malaguzzi Valeri, Laura & Walsh, Darragh, 2014. "Irish Energy Policy: An Analysis of Current Issues," Research Series, Economic and Social Research Institute (ESRI), number rs37 edited by FitzGerald, John & Malaguzzi Valeri, Laura.
    2. Šćepanović, Sanja & Warnier, Martijn & Nurminen, Jukka K., 2017. "The role of context in residential energy interventions: A meta review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 1146-1168.

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    More about this item

    Keywords

    Randomised-controlled trial; Smart-metering; Energy efficiency adoption;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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