Template-Type: ReDIF-Paper 1.0
Title: Disaggregate Consumption Feedback and Energy Conservation
Author-Name: Andreas Gerster
Author-Email: gerster@uni-mannheim.de
Author-Name: Mark A. Andor
Author-Email:
Author-Name: Lorenz Götte
Author-Email:


Classification-JEL: D12, D83, L94, Q41
Keywords: Randomized controlled trial, disaggregation, consumption feedback, energy conservation

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.

Note: 
Length: 72
Creation-Date: 2020-06
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp182
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2020_182