Household valuation of smart-home functionalities in Slovenia

The paper analyses consumer willingness to invest in a smart home and attempts to establish willingness to pay for various smart-home functionalities among Slovenian households in 2013. The estimated results suggest that consumers positively perceive energy and security related smart-home functionalities, though willingness to pay (WTP) for any particular functionality is not found to be very high. In comparison to stated WTP, current market prices are mostly too high to expect higher penetration rates of smart home devices in the very near future. Household income, technology progressiveness, and energy conservation habits are found to positively influence purchases of smart-home functionalities. (C) 2014 Elsevier Ltd. All rights reserved.