When East meets West: Understanding residents’ home energy management system adoption intention and willingness to pay in Japan and the United States

Abstract A Home Energy Management System (HEMS) is a system for increasing energy efficiency and demand flexibility. Despite the steady advances in HEMS technology, there are still several barriers impeding its acceptance. This paper investigates the multifaceted factors influencing residents' willingness to adopt and pay for HEMS in New York (N.Y.) and Tokyo areas. Our findings suggest that perceived usefulness, a favorable attitude toward HEMS, and social norms are positively associated with adoption intention in both areas. While lacking perceived behavioral control is a barrier for adoption intention in Tokyo, privacy and cybersecurity concerns are barriers for N.Y. residents. The majority of residents indicate a strong or moderately strong adoption intention even when their cost concerns are great. Cost concerns, however, are associated with low willingness to pay (WTP) in both areas, as is perceived ease of use. Technology anxiety only negatively affects WTP in Tokyo. Positive attitudes, social norms, and perceived usefulness are positive predictors of WTP in both areas. Younger and higher-income were associated with higher WTP only in N.Y. Unexpectedly, trust in utilities is not a significant predictor of adoption intention or WTP. Finally, this study provides useful policy recommendations for promoting HEMS in two distinct cultures.