Willingness to pay for home energy management systems: A survey in New York and Tokyo

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This study evaluates the acceptability of home energy management systems (HEMS) in New York and Tokyo using a questionnaire survey. We investigated three basic functions of HEMS: money saving, automatic control, and environmental impact, and then quantified people's propensity to accept each of these three functions by measuring their willingness to pay. Using the willingness to pay results, we estimated the demand probability under a given usage price for each of the three functions of home energy management systems and analyzed how socio-economic and demographic factors influence the demand probability. The demand probability related to a home energy management system function decreases as the usage price of the function increases. However, depending on people's socio-economic characteristics, the rate of decrease in demand probability relative to the rate of increase in usage price varies. Among the three functions of home energy management systems, we found that the automatic control function showed the highest demand probability in New York and Tokyo, emphasizing the significance of an automatic control function. In New York, when the home energy management system has an automatic control function, its demand probability increases, which is further enhanced if people trust their utility company. In Tokyo, when a home energy management system has an environmental impact function, its demand probability increases at a given price. People in Tokyo have anxieties related to new technologies such as home energy management systems. Therefore, it is necessary to enhance their comprehension of a home energy management systems to address this anxiety.

Original languageEnglish
Article number4790
JournalSustainability (Switzerland)
Issue number17
Publication statusPublished - 2019 Sep 1



  • Contingent Valuation Method (CVM)
  • Demand Probability
  • Home Energy Management System (HEMS)
  • Ordered Probit Analysis
  • Willingness to Pay (WTP)

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Renewable Energy, Sustainability and the Environment
  • Management, Monitoring, Policy and Law

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