The impact of smart meter programmes on household water consumption: evidence from New Zealand

Juan Wang, Jakobus E. van Zyl, Le Wen, Yongbo Li and Shuai Che

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2025, vol. 118, issue C

Abstract: Based on monthly water use data from 22,362 households in Auckland from January 2022 to June 2023, this study investigates the effect of smart meters on household water use through a Difference-in-Differences (DID) model. This paper finds that replacing conventional meters with smart water meters resulted in an increase in measured residential water use by about 4 %. However, this increase was offset by the installation of mobile apps that provide real-time water usage information and leakage alerts. Such features have motivated residents to manage their water use more rationally, potentially reducing average consumption by around 5 %. Additionally, heterogeneity analysis reveals that the installation of smart water meters and mobile apps led to increased water use among households with low baseline consumption and decreased water use among those with high baseline consumption. The empirical findings provide key insights for smart metering implementation and offers practical recommendations for policymakers.

Keywords: Smart meter; Water demand management; Water conservation; Behavioral change; New Zealand (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:118:y:2025:i:c:s2214804325000771

DOI: 10.1016/j.socec.2025.102413

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