Measuring the urban-rural divide of smart grid adoption by U.S. electric utilities in the American West

In my research, I quantitatively examine factors that advance or hinder the adoption of Advanced Metering Infrastructure (AMI) by U.S. investor-owned utilities in the American West. Previous studies have predominantly focused... [ view full abstract ]

In my research, I quantitatively examine factors that advance or hinder the adoption of Advanced Metering Infrastructure (AMI) by U.S. investor-owned utilities in the American West. Previous studies have predominantly focused on the influence of installed AMI on the electric grid. To expand knowledge in this research area, I consider AMI installation as a dependent variable. Drawing on literature that focuses on technology adoption and literature that discusses the concept of energy justice, I conduct a panel-data analysis to examine a unique data set built with help of published data from different sources. Controlling for other factors, I find that utilities that serve rural areas are more likely to delay AMI installation than those that serve urban areas, which translates into a growing gap in AMI use between rural and urban areas. AMI functionality requires high-quality communication services due to the technical requirements of processing and transmitting large amounts of data. These services may be less affordable in areas with low population density. Policy interventions may be needed to increase AMI installation in rural areas if the benefits of this technology are to be extended beyond densely populated areas.