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Demand response: A carbon-neutral resource?

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  • Smith, Alexander M.
  • Brown, Marilyn A.

Abstract

Recent literature on demand response raises questions about the long-term capacity and carbon emissions impacts of expanding its deployment. To provide economy-wide insights into how demand response, capacity planning, and carbon emissions might interact in the future, we perform economic forecasts using a computational general equilibrium model based on the Energy Information Administration's National Energy Modeling System. We develop multiple scenarios of assumptions about the load-shifting and load reduction potential of demand response based on prior literature. The results of these scenarios suggest that demand response can defer large amounts of peak capacity construction. Contrary to expectations of increased carbon intensity, the results of our scenarios also suggest that demand response will have little impact on overall carbon emissions from electric power generation. This suggests that demand response can serve as a long-term, low-cost alternative for peak-hour load balancing without increasing carbon emissions.

Suggested Citation

  • Smith, Alexander M. & Brown, Marilyn A., 2015. "Demand response: A carbon-neutral resource?," Energy, Elsevier, vol. 85(C), pages 10-22.
    • Handle: RePEc:eee:energy:v:85:y:2015:i:c:p:10-22
    DOI: 10.1016/j.energy.2015.02.067
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    References listed on IDEAS

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    Cited by:

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    3. Brown, Marilyn A. & Li, Yufei & Soni, Anmol, 2020. "Are all jobs created equal? Regional employment impacts of a U.S. carbon tax," Applied Energy, Elsevier, vol. 262(C).
    4. Brown, Marilyn A. & Kim, Gyungwon & Smith, Alexander M. & Southworth, Katie, 2017. "Exploring the impact of energy efficiency as a carbon mitigation strategy in the U.S," Energy Policy, Elsevier, vol. 109(C), pages 249-259.
    5. Parrish, Bryony & Heptonstall, Phil & Gross, Rob & Sovacool, Benjamin K., 2020. "A systematic review of motivations, enablers and barriers for consumer engagement with residential demand response," Energy Policy, Elsevier, vol. 138(C).
    6. Olkkonen, Ville & Ekström, Jussi & Hast, Aira & Syri, Sanna, 2018. "Utilising demand response in the future Finnish energy system with increased shares of baseload nuclear power and variable renewable energy," Energy, Elsevier, vol. 164(C), pages 204-217.
    7. Brown, Marilyn A. & Chapman, Oliver, 2021. "The size, causes, and equity implications of the demand-response gap," Energy Policy, Elsevier, vol. 158(C).
    8. Koirala, Binod Prasad & Koliou, Elta & Friege, Jonas & Hakvoort, Rudi A. & Herder, Paulien M., 2016. "Energetic communities for community energy: A review of key issues and trends shaping integrated community energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 722-744.
    9. Guo, Peiyang & Li, Victor O.K. & Lam, Jacqueline C.K., 2017. "Smart demand response in China: Challenges and drivers," Energy Policy, Elsevier, vol. 107(C), pages 1-10.
    10. Alexander Vaninsky, 2018. "Optimal environment-friendly economic restructuring: the United States–China cooperation case study," Economic Change and Restructuring, Springer, vol. 51(3), pages 189-220, August.
    11. Nikolaos Iliopoulos & Motoharu Onuki & Miguel Esteban, 2021. "Shedding Light on the Factors That Influence Residential Demand Response in Japan," Energies, MDPI, vol. 14(10), pages 1-23, May.
    12. Neves, Diana & Pina, André & Silva, Carlos A., 2018. "Assessment of the potential use of demand response in DHW systems on isolated microgrids," Renewable Energy, Elsevier, vol. 115(C), pages 989-998.
    13. Dahlke, Steven & Prorok, Matt, 2018. "Consumer savings, price, and emissions impacts of increasing demand response in the Midcontinent electricity market," OSF Preprints d83bu, Center for Open Science.
    14. Fera, M. & Macchiaroli, R. & Iannone, R. & Miranda, S. & Riemma, S., 2016. "Economic evaluation model for the energy Demand Response," Energy, Elsevier, vol. 112(C), pages 457-468.
    15. Bastida, Leire & Cohen, Jed J. & Kollmann, Andrea & Moya, Ana & Reichl, Johannes, 2019. "Exploring the role of ICT on household behavioural energy efficiency to mitigate global warming," Renewable and Sustainable Energy Reviews, Elsevier, vol. 103(C), pages 455-462.

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