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The Impact of Advanced Metering Infrastructure on Residential Electricity Consumption - Evidence from California

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  • Paschmann, Martin

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

  • Paulus, Simon

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

Abstract

One important pillar in the debate about energy-saving measures addresses energy conservation. In this paper, we focus on the deployment of advanced metering infrastructure to reduce the impact of limited information and bounded rationality of consumers. For California, we empirically analyze the influence of a statewide and policy-driven installation of advanced metering infrastructure. We apply synthetic control methods to derive a suitable control group. We then conduct a Difference-in-Differences estimation and find a significant negative impact of smart meters on monthly residential electricity consumption that ranges from 6.1 to 6.4%. Second, such an impact only occurs in non-heating periods and does not fade out over the analyzed time period.

Suggested Citation

  • Paschmann, Martin & Paulus, Simon, 2017. "The Impact of Advanced Metering Infrastructure on Residential Electricity Consumption - Evidence from California," EWI Working Papers 2017-8, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    • Handle: RePEc:ris:ewikln:2017_008
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    Cited by:

    1. Yujie Xu & Vivian Loftness & Edson Severnini, 2021. "Using Machine Learning to Predict Retrofit Effects for a Commercial Building Portfolio," Energies, MDPI, vol. 14(14), pages 1-24, July.

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    More about this item

    Keywords

    Behavioral Economics; Bounded Rationality; Energy Conservation; Informational Feedback; Smart Meters; Residential Electricity Consumption;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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