Advanced Metering Infrastructure Deployment in the United States: The Impact of Polycentric Governance and Contextual Changes

Advanced metering infrastructure provides the first building block in smart grids by empowering customers and utilities with real-time information regarding energy use. It is a key element in the U.S. government's push for electric grid modernization. Using a panel dataset for 50 U.S. states and the District of Columbia over the years 2007-2012, we evaluate the impacts of a polycentric governance system and socioeconomic contexts on states' performance in smart metering deployment. We find that the advanced metering technological change in the United States has been exclusively created by the interdependencies and interactions between different layers of government. High-tech industry is the only socioeconomic factor that has a negative impact on smart meter deployment, whereas other factors, such as pressures from energy consumers and environmental groups, and electric grid conditions, have negligible impacts.