Disaggregate Consumption Feedback and Energy Conservation

Lorenz Goette, Andreas Gerster and Mark Andor

No 14954, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Novel information technologies hold the promise to improve decision making. In the context of smart metering, we investigate the impact of providing households with appliance-level electricity feedback. In a randomized controlled trial, we find that the provision of appliance-level feedback creates a conservation effect of an additional 5% relative to a group receiving standard (aggregate) feedback. These conservation effects are largely driven by reductions in electricity use of 10% to 15% during peak hours. Consumers with appliance-level feedback hold more accurate beliefs about the energy consumption of different appliances, consistent with the mechanism in our accompanying model. Our result suggests that conservation effects from a smart-meter rollout will be much larger if appliance-level feedback can be provided. Based on a sufficient statistics approach, we estimate that appliance-level feedback could raise consumer surplus by about 570 to 600 million Euro per annum for German households.

Keywords: Randomized controlled trial; Disaggregation; Consumption feedback; Energy conser- vation (search for similar items in EconPapers)
JEL-codes: D12 D83 L94 Q41 (search for similar items in EconPapers)
Date: 2020-06
New Economics Papers: this item is included in nep-ene, nep-exp, nep-ict and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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