Thesis advisor: Scott Fulford / Can smart metering program and time-of-use (TOU) prices help reduce energy consumption in New York City? Being able to track electricity consumption levels and to modify consumer usage patterns are important for policy makers to efficiently manage the energy markets. Unfortunately, no reliable and up-to-date data have been brought to bear on this question. I study the effects of time-of-use (TOU) prices and smart metering for the residents of Shanghai and I investigate further what can policy makers do in order to adapt and transfer this successful DSM experience from Shanghai to the residential sector in New York City. The primary objective of my study is to characterize the realistic short-term and long-term potential for the smart metering program in New York City given my empirical findings that the smart metering program has had brought great benefits to the residents of Shanghai. People respond to incentives; if electricity is charged at different prices throughout a day, consumers are likely to shift their usage to when it is cheaper. My findings suggest that policy makers should think harder about designing a pricing scheme that can optimize the social plus. / Thesis (BA) — Boston College, 2011. / Submitted to: Boston College. College of Arts and Sciences. / Discipline: College Honors Program. / Discipline: Economics Honors Program. / Discipline: Economics.