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Mechanism A: Conservation Effect of Consumer Information and Feedback Systems A.1 Introduction This topic examines the behavior of residential sector consumers related to in-home energy consumption. Approximately 11% of energy use is related to direct in-home consumption for space conditioning, illumination, and appliances (Shui and Dowlatabi 2005). Many analyses suggest that reduced home energy usage by consumers can make a substantial contribution to overall energy efficiency and greenhouse gas (GHG) emission reduction (Sanquist 2008; Gardner and Stern 2008; Shui and Dowlatabi 2005). A variety of approaches to influence consumer behavior are possible, including smart grid technology and feedback systems. This topic reviews the research concerning feedback on energy use (as distinct from capacity) and its effects on residential sector consumer behavior, identifies potential quantitative benefits in terms of reduced energy use and GHG emissions, and proposes research and development directions warranting further exploration. While the main focus of this section concerns the potential benefits of smart grid technologies, which include detailed and timely energy feedback and a variety of usage information analyses at the utility level, there are certain overriding psychological and behavioral considerations that set the context for potential benefits. Primary among these is the issue of energy invisibility, which refers to the gradual de- coupling of overt human behavior from energy usage. With the transition from wood fuel to coal through gas and electric power for space conditioning, the overt actions required to obtain energy have all but been eliminated (Stern and Aronson 1984). Further, while a variety of studies have shown that consumers are influenced by incentives to reduce their energy use, this does not suggest that people routinely behave as rational decision makers. Indeed, there is ample evidence to show that people often express a belief about energy use but behave in an opposite manner (for example, weatherization decisions). This general finding applies more broadly to the value of information, i.e., simply providing information to consumers does not necessarily alter their behavior. Instead, a variety of other factors combine to influence the final outcome. It is important to realize that the enhanced information, analysis, and delivery prospects offered by smart grid technologies will be embedded in an overriding socio-economic context. governed more by behavioral momentum (inertia) than attitudes and information (Ehrhardt-Martinez 2008; Stern and Aronson 1984). A.2 Review of Information Intervention and Feedback Studies This section draws from several recent comprehensive reviews of behavioral studies, including Abrahamse et al. (2005); Darby (2006); Fischer (2008); and Erhardt-Martinez (2008). Abrahamse et al. (2005) evaluated studies in terms of the type of manipulation made, i.e., providing information or requesting commitments and goal setting on the part of the consumer, as well as the effects of providing feedback by various mechanisms. Darby (2006) and Fischer (2008) focus specifically on feedback, while Erhardt-Martinez (2008) provides a comprehensive socio-economic framework for behavioral approaches. The studies presented below are limited to those in which percentage savings have been reported during the intervention period or longer-term follow-up, and for which the research is based on field studies in residential settings. We focus here on positive results, i.e., studies that actually show energy savings. However, the reader should keep in mind that a substantial percentage (22%) of the A.1PDF Image | The Smart Grid: An Estimation of the Energy and CO2 Benefits
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