public acceptance of smart meters: integrating psychology and practice

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Beth Karlin Center for Unconventional Security Affairs University of California, Irvine Public Acceptance of Smart Meters: Integrating Psychology and Practice

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Public acceptance of utility programs and initiatives is vital for efficient deployment. Consumer complaints, protests, and lawsuits, can significantly impede progress and cost utilities, cities, and taxpayers money. One recent area where this has become clear is the deployment of smart meters. While the advantages of smart meters are widely accepted by utilities, academics, and governments, some communities have experienced backlash and disapproval from customers. Many of these concerns have been rebutted by scholars and this backlash seems to vary between regions, suggesting that backlash may be incited by issues related to deployment, rather than the technology itself. It is hypothesized that much of the backlash can be prevented by greater attention to public communication; how to do so is being explored, but is as yet undetermined. This paper presents a model of technology acceptance drawn from psychological theory and a framework of potential strategies for increasing acceptance. Through analysis of 20 U.S. smart meter rollouts, a list of 56 public communication strategies was compiled and subsequently organized into a framework of 24 key strategies based on temporal (upstream, midstream, downstream) and functional (involve, inform) characteristics. This framework, which integrates key psychological theories on technology acceptance, provides utilities with initial guidance on developing successful smart meter communication campaigns.

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Page 1: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Beth Karlin Center for Unconventional Security Affairs

University of California, Irvine

Public Acceptance of Smart Meters: Integrating Psychology and Practice

Page 2: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Transformational Media Lab 1.  Technology and new media are changing how people

interact with our natural, built, and social worlds.

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 3: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Transformational Media Lab

B. Karlin / 13 Aug 2012 ACEEE Summer Study

1.  Technology and new media are changing how people interact with our natural, built, and social worlds.

2.  There are potential opportunities to leverage these changes for pro-social / pro-environmental benefit.

Page 4: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Transformational Media Lab 1.  Technology and new media are changing how people

interact with our natural, built, and social worlds. 2.  There are potential opportunities to leverage these

changes for pro-social / pro-environmental benefit 3.  A psychological approach provides a theoretical base and

empirical methodology with which to study this potential.

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 5: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Transformational Media Lab Mission:

Our lab studies how media is (and can be) used to transform individuals, communities, and systems.

Public / Civic Engagement

Documentary Film Campaigns

Residential Energy Use

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 6: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Smart Meters as Transformational Media 1.  Technology and new media

2.  Potential opportunities

3.  Psychological approach

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 7: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Smart Meters as Transformational Media

1.  Technology and new media 2.  Potential opportunities

3.  Psychological approach

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 8: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Smart Grid “the modernization of electricity transmission and distribution system to maintain a reliable and secure electricity infrastructure that can meet future demand growth” (EISA, 2007)

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 9: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Smart Grid

B. Karlin / 13 Aug 2012 ACEEE Summer Study

  US: $4.5 billion in Recovery and Reinvestment Act   European Union: goal of 80% coverage by 2020   Canada: mandates for 100% coverage

Page 10: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Smart Meters

B. Karlin / 13 Aug 2012 ACEEE Summer Study

  Information collected on-site   Average frequency: monthly

(approx. 12 data points/year)

  Information sent wirelessly   Average frequency: hourly

(approx 8,760 data points/year)

Page 11: Public Acceptance of Smart Meters: Integrating Psychology and Practice

  Capture instantaneous current signatures for load identification, disaggregation, and analysis

blu-ray netflix streaming

200 microsecond sampling

Disambiguation

(approx 6.3 trillion data points/year)

Page 12: Public Acceptance of Smart Meters: Integrating Psychology and Practice

B. Karlin/ May 2011

Page 13: Public Acceptance of Smart Meters: Integrating Psychology and Practice

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 14: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Smart Meters as Transformational Media

1.  Technology and new media 2.  Potential opportunities

3.  Psychological approach

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 15: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Smart Meters as Transformational Media 1.  Technology and new media

2.  Potential opportunities 3.  Psychological approach

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 16: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Smart Meters offer…  Efficiency gains for utilities

 Automatic transmission  Critical Peak Pricing

 Feedback for consumers  Transparency of energy information

  Potential for energy conservation

“Knowledge is power and I am sure the facts are staggering enough that when learned they could cause some change in people’s lives.”

Page 17: Public Acceptance of Smart Meters: Integrating Psychology and Practice

200+ products in the market

B. Karlin / 13 Aug 2012 ACEEE Summer Study

(Karlin, Ford, & Squiers, Manuscript in preparation)

Page 18: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Empirical results   100+ studies conducted since 1976

  Results average 10% (e.g., Darby, 2006; Fischer, 2008)

  Effect sizes ranged from -.0830 to .4803

  Mean r-effect size = .1174 (p < .001)

B. Karlin / 13 Aug 2012 ACEEE Summer Study

(Karlin & Zinger, Manuscript in preparation)

I had no idea how much

energy computers used

We installed power strips to easily power off all

high energy items

Page 19: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Window of Opportunity

Page 20: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Smart Meters as Transformational Media 1.  Technology and new media

2.  Potential opportunities 3.  Psychological approach

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 21: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Smart Meters as Transformational Media 1.  Technology and new media

2.  Potential opportunities

3.  Psychological approach

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 22: Public Acceptance of Smart Meters: Integrating Psychology and Practice

People and Energy Use

Page 23: Public Acceptance of Smart Meters: Integrating Psychology and Practice

People and Energy Use

Page 24: Public Acceptance of Smart Meters: Integrating Psychology and Practice

People and Smart Meters

Page 25: Public Acceptance of Smart Meters: Integrating Psychology and Practice

 Psychology: the scientific study of mental processes and behavior (American Heritage Dictionary)

 From the Greek “psyche” (mind, soul) and “logia” (study of)

 Areas include:   Cognitive –mental processes (learning, perception, memory)

  Developmental - intellectual, as well as moral development of the mind

  Social - reactions to social stimuli and their underlying mental processes

  Neurological –behavior that springs from reactions within the nervous system

Psychology studies people

Page 26: Public Acceptance of Smart Meters: Integrating Psychology and Practice

It’s not just…

Page 27: Public Acceptance of Smart Meters: Integrating Psychology and Practice

But all of this

Page 28: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Smart Meters as Transformational Media 1.  Technology and new media

2.  Potential opportunities

3.  Psychological approach

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 29: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Our Approach 1.  Technology and new media

2.  Potential opportunities

3.  Psychological approach

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Current Study: Apply relevant psychological theory to the case of smart meter adoption; use content analysis to develop a framework of communication strategies; provide utilities with guidance on how to develop successful campaigns.

Page 30: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Our Approach 1.  Technology and new media

2.  Potential opportunities

3.  Psychological approach

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Current Study: Apply relevant psychological theory to the case of smart meter adoption; use content analysis to develop a framework of communication strategies; provide utilities with guidance on how to develop successful campaigns.

Page 31: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Dual Process Model

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 32: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Cognitive Appraisal

B. Karlin / 13 Aug 2012 ACEEE Summer Study www.cred.columbia.edu

Page 33: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Affective Response

B. Karlin / 13 Aug 2012 ACEEE Summer Study www.cred.columbia.edu

Page 34: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Perceiving Risk and Benefit

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 35: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Perceiving Risk and Benefit

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 36: Public Acceptance of Smart Meters: Integrating Psychology and Practice

The Role of Trust

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Important characteristics: 1. Ability 2. Benevolence 3. Integrity

"People don't really care how much you know until they know how much you care.”

- Mike McNight

Page 37: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Public Participation

B. Karlin / 13 Aug 2012 ACEEE Summer Study

•  Public acceptance is a function of both acceptance criteria (features related to the policy/program) and process criteria (features of the decision-making process)

1.  Information (e.g., I find it important to be informed)

2.  Consultation (e.g., people should be included in process)

3.  Cooperation (people should be involved in process)

4.  Self-responsibility (I feel responsible for the project)

(Rowe & Frewer, 2000; Zoellner et al., 2011)

Page 38: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Trust Confidence Cooperation Model

B. Karlin / 13 Aug 2012 ACEEE Summer Study (Earle, Siegrist, and Gutscher, 2007)

Page 39: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Our Approach 1.  Technology and new media

2.  Potential opportunities

3.  Psychological approach

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Current Study: Apply relevant psychological theory to the case of smart meter adoption; use content analysis to develop a framework of communication strategies; provide utilities with guidance on how to develop successful campaigns.

Page 40: Public Acceptance of Smart Meters: Integrating Psychology and Practice

•  Sample of 20 utilities drawn from a report of smart meter deployments (The Institute for Electric Efficiency, 2011).

•  All five California utilities from the list were included and a random sample of 15 additional utilities was chosen.

Collection

•  Data collected Fall 2011 / Winter 2012 •  Collection methods:

•  (1) Official utility websites •  (2) Internet queries: (utility company name) and “smart meter”

Collection

•  Initial codes based on previous literature •  Open coding resulted in over100 distinct codes •  Axial coding by study authors resulted in 52 specific actions related to

smart grid deployment, grouped into 11 primary categories

Coding

•  Analysis of final coding sheet resulted in key themes in utility deployment as well as framework for public communication

•  Next steps involve testing framework using a comparative case study of 4 utilities, chosen from among the sample

Analysis

Content Analysis Methodology

Page 41: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Utilities included in sample

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Page 42: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Theoretically derived strategies

B. Karlin / 13 Aug 2012 ACEEE Summer Study

•  Dual Process: emotional appeals

•  Risk Perception: emphasize benefits; inform early

•  Trust: independent research; community programs

•  Communication: train and engage service workers

•  Participation: public comment or vote; tours & events

Page 43: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Strategies used by utilities

Page 44: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Findings 1.  Most common – information about meters

•  Mail and door hanger notification •  Printed materials (e.g., brochures) •  Smart meter information on website

2.  Mostly just prior to or during installation

3.  Innovative practices among a small handful of utilities •  Feedback devices and enhanced websites •  Involvement with community groups and events •  Use of interactive media

4.  Consumers created their own ‘programs’, when needed.

Page 45: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Our Approach 1.  Technology and new media

2.  Potential opportunities

3.  Psychological approach

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Current Study: Apply relevant psychological theory to the case of smart meter adoption; use content analysis to develop a framework of communication strategies; provide utilities with guidance on how to develop successful campaigns.

Page 46: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Smart Meter Communication Framework

(during the decision-making process)

(implementation / installation)

(continued involvement)

Page 47: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Our Approach 1.  Technology and new media

2.  Potential opportunities

3.  Psychological approach

B. Karlin / 13 Aug 2012 ACEEE Summer Study

Current Study: Apply relevant psychological theory to the case of smart meter adoption; use content analysis to develop a framework of communication strategies; provide utilities with guidance on how to develop successful campaigns.

Page 48: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Some thoughts… 1. First impressions matter.

2. Everybody is a potential communicator.

3. If you don’t communicate, somebody else will.

4. We are motivated to believe what we want to believe.

5. People remember how they feel more than what they hear.

Page 49: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Some suggestions 1. Think about communication before, during, AND after actual

smart meter installation/deployment.

2. Make sure your communication channels are bi-directional (involving and inviting participation of the community).

3. Work with independent parties (e.g., universities ) on research and development of your programs.

4. Engage and utilize staff and the public as informal communicators.

5. Offer benefits (e.g., enhanced billing, feedback) after the meters are installed, but postpone major rate changes.

Page 50: Public Acceptance of Smart Meters: Integrating Psychology and Practice

Closing Thoughts

Contact: [email protected]

“The public is the only critic whose opinion is worth anything at all.” - Mark Twain

Acknowledgements

Research Assistants: Nicklas Svenson Cassandra Squiers