Disaggregate Consumption Feedback
We investigate the impact of providing households with disaggregate consumption feedback and develop a framework to assess its welfare implications. In the context of smart metering, we find that the provision of appliance-level feedback causes an energy conservation effect of 5% relative to a group receiving standard (aggregate) feedback. Hence, a smart meter rollout will be substantially more effective if appliance-level feedback is provided. We also show that the current regulatory approach to assess consumer surplus overestimates the welfare gains from smart meter feedback.
Gerster, A., M. Andor and L. Götte (2026), Disaggregate Consumption Feedback. The Economic Journal (forthcoming)
DOI: 10.1093/ej/ueaf084