On the Effectiveness of Smart Metering Technology Adoption: Evidence from the National Rollout in the United Kingdom

Abstract

In response to the burgeoning threats of climate change to humanity, numerous governments, such as those of the United States and most European countries, have launched rollout programs for the distribution of smart metering technology (SMT). Despite this notable recent investment, questions of whether and why SMT adoption facilitates the reduction of households’ energy demands remain relatively unexplored. Building on cognitive dissonance theory, we propose a research model for SMT adoption, residential energy-saving behaviors, and moderating factors. We then empirically test the model using a rich household dataset from the United Kingdom between 2012 and 2016. Our results show that SMT adoption is positively associated with energy-saving behaviors, while energy-saving motivations substantially moderate this association—a lower level of concern about saving energy / a higher level of concern about climate change amplifies this effect. Importantly, we find that SMT usage positively moderates this relationship, but this marginal gain decreases in technology usage intensity. Our findings contribute to the information systems literature by showing a consequence of new technology adoption along with the role of cognitive dissonance in promoting intended objectives and identifying potential moderating effects. We discuss actionable insights for policymakers and utility firms.