When does it work? the effect of a smart meter mobile application on residential electricity consumption

Abstract

A smart meter digitally sends meter readings to users in real-time helping them to increase energy literacy and to behave efficiently. This paper answers the question of when does increased knowledge lead to behavioral change in the context of reducing electricity consumption. It will be answered with the data of Korean long-term smart meter users including daily household-level electricity use, smart meter mobile app data and the survey. The data analysis reveals on average neither the feedback has an impact on daily electricity consumption nor the consumption amount affect the feedback-seeking behavior. In contrast, people are inclined to behave when they realize the loss and in this context, after entering the next progressive tariff stage. Depending on the demographic groups, the reduction amount was different. In conclusion, the results demonstrate that indeed smart meters are still effective even after the novelty wears off to the consumers. This paper suggests that loss aversion framed message will yield maximum outcome if jointly reinforced progressive tariff stages or in the peak demand hour.