Smart Thermostats, Automation, and Time-Varying Prices

A-Tier
Journal: American Economic Journal: Applied Economics
Year: 2025
Volume: 17
Issue: 1
Pages: 90-125

Authors (4)

Joshua Blonz (not in RePEc) Karen Palmer (not in RePEc) Casey J. Wichman (Georgia Institute of Technolog...) Derek C. Wietelman (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Can automation complement economic incentives? We explore this question by randomly encouraging households to activate a feature on their existing smart thermostat that automates responsiveness to time-of-use electricity pricing. The feature reduces air conditioning use during the highest-priced afternoon period, raising indoor temperatures above a household's preferred temperature, primarily for customers who are typically home during the day. Customers infrequently override the feature when they experience discomfort, suggesting that they are willing to trade off monetary savings for small increases in discomfort. Automation thus enables low-cost changes in household energy use, with potentially large electricity supply-cost reductions at scale.

Technical Details

RePEc Handle
repec:aea:aejapp:v:17:y:2025:i:1:p:90-125
Journal Field
General
Author Count
4
Added to Database
2026-01-29