IDEAS home Printed from https://ideas.repec.org/a/sae/engenv/v29y2018i5p706-731.html
   My bibliography  Save this article

Demand-side policy: Global evidence base and implementation patterns

Author

Listed:
  • Peter Warren

Abstract

Demand-side management (DSM) policy refers to government policies for managing energy consumption in order to meet environmental and energy security objectives. The broader term of demand-side management encompasses energy efficiency, demand response and on-site generation and storage. A comprehensive meta-evaluation of the global evidence base for demand-side policy is lacking in the literature, and this paper contributes to filling this research gap. The paper focuses on the quality of the evidence base and policy implementation patterns and identifies 30 countries and 36 sub-national states across six continents that have implemented demand-side management policies and produced high-quality ex-post evaluations of those policies. The 690 high-quality evaluations are primarily conducted by industry rather than by governments or academia. The results show that 12 types of individual demand-side management policy and 9 demand-side management policy packages have been implemented and evaluated, and that carbon emissions reduction is the primary driver for demand-side management policies. The evidence base is greatest in the USA, the UK, California, France and China, and alternative utility business models (such as performance targets and decoupling policies), information campaigns, loans and subsidies, utility obligations and performance standards are the most commonly implemented and evaluated policies. This paper argues that demand-side policy will play an increasingly important role as a complement to low carbon activities on the supply-side in the transition to a more environmentally sustainable energy system.

Suggested Citation

  • Peter Warren, 2018. "Demand-side policy: Global evidence base and implementation patterns," Energy & Environment, , vol. 29(5), pages 706-731, August.
    • Handle: RePEc:sae:engenv:v:29:y:2018:i:5:p:706-731
    DOI: 10.1177/0958305X18758486
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0958305X18758486
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0958305X18758486?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Walawalkar, Rahul & Fernands, Stephen & Thakur, Netra & Chevva, Konda Reddy, 2010. "Evolution and current status of demand response (DR) in electricity markets: Insights from PJM and NYISO," Energy, Elsevier, vol. 35(4), pages 1553-1560.
    2. Yu, Yongzhen, 2010. "Policy redesign for solving the financial bottleneck in demand side management (DSM) in China," Energy Policy, Elsevier, vol. 38(10), pages 6101-6110, October.
    3. John Hills, 2012. "Final report of the Hills Independent Fuel Poverty Review: Getting the Measure of Fuel Poverty," CASE Reports casereport72, Centre for Analysis of Social Exclusion, LSE.
    4. Nadel, Steven & Gold, Rachel, 2010. "Utility DSM: Off the Coasts and into the Heartland," The Electricity Journal, Elsevier, vol. 23(8), pages 51-62, October.
    5. Meyers, Edward M. & Hu, Grace M., 1999. "Demand-Side Carbon Reduction Strategies in an Era of Electric Industry Competition," The Electricity Journal, Elsevier, vol. 12(1), pages 72-81, January.
    6. Lee, A. D. & Onisko, S. A. & Sandahl, L. J. & Butler, J., 1994. "Everyone wins! -- A program to upgrade energy efficiency in manufactured housing," The Electricity Journal, Elsevier, vol. 7(2), pages 77-87, March.
    7. Nadel, Steven & Kushler, Marty, 2000. "Public Benefit Funds: A Key Strategy for Advancing Energy Efficiency," The Electricity Journal, Elsevier, vol. 13(8), pages 74-84, October.
    8. Zarnikau, Jay W., 2010. "Demand participation in the restructured Electric Reliability Council of Texas market," Energy, Elsevier, vol. 35(4), pages 1536-1543.
    9. Wang, Jianhui & Bloyd, Cary N. & Hu, Zhaoguang & Tan, Zhongfu, 2010. "Demand response in China," Energy, Elsevier, vol. 35(4), pages 1592-1597.
    10. Vine, E. & Rhee, C.H. & Lee, K.D., 2006. "Measurement and evaluation of energy efficiency programs: California and South Korea," Energy, Elsevier, vol. 31(6), pages 1100-1113.
    11. Wikler, Gregory A., 2000. "Policy Options for Energy Efficiency Initiatives," The Electricity Journal, Elsevier, vol. 13(1), pages 61-68.
    12. Bachrach, Devra, 2003. "Energy Efficiency Leadership in California: Preventing the Next Crisis," The Electricity Journal, Elsevier, vol. 16(6), pages 37-47, July.
    13. Schultz, Don & Eto, Joseph, 1990. "Carrots and sticks: Shared-savings incentive programs for energy efficiency," The Electricity Journal, Elsevier, vol. 3(10), pages 32-32, December.
    14. Yu, Yongzhen, 2012. "How to fit demand side management (DSM) into current Chinese electricity system reform?," Energy Economics, Elsevier, vol. 34(2), pages 549-557.
    15. Spees, Kathleen & Lave, Lester B., 2007. "Demand Response and Electricity Market Efficiency," The Electricity Journal, Elsevier, vol. 20(3), pages 69-85, April.
    16. Sorrell, Steve & Dimitropoulos, John & Sommerville, Matt, 2009. "Empirical estimates of the direct rebound effect: A review," Energy Policy, Elsevier, vol. 37(4), pages 1356-1371, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhou, Kaile & Yang, Shanlin, 2015. "Demand side management in China: The context of China’s power industry reform," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 954-965.
    2. 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.
    3. Kim, Jin-Ho & Shcherbakova, Anastasia, 2011. "Common failures of demand response," Energy, Elsevier, vol. 36(2), pages 873-880.
    4. Alasseri, Rajeev & Tripathi, Ashish & Joji Rao, T. & Sreekanth, K.J., 2017. "A review on implementation strategies for demand side management (DSM) in Kuwait through incentive-based demand response programs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 617-635.
    5. Ming, Zeng & Song, Xue & Mingjuan, Ma & Lingyun, Li & Min, Cheng & Yuejin, Wang, 2013. "Historical review of demand side management in China: Management content, operation mode, results assessment and relative incentives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 470-482.
    6. Liu, Yingqi, 2017. "Demand response and energy efficiency in the capacity resource procurement: Case studies of forward capacity markets in ISO New England, PJM and Great Britain," Energy Policy, Elsevier, vol. 100(C), pages 271-282.
    7. Najafi, M. & Ehsan, M. & Fotuhi-Firuzabad, M. & Akhavein, A. & Afshar, K., 2010. "Optimal reserve capacity allocation with consideration of customer reliability requirements," Energy, Elsevier, vol. 35(9), pages 3883-3890.
    8. Bourgeois, Cyril & Giraudet, Louis-Gaëtan & Quirion, Philippe, 2021. "Lump-sum vs. energy-efficiency subsidy recycling of carbon tax revenue in the residential sector: A French assessment," Ecological Economics, Elsevier, vol. 184(C).
    9. Nikzad, Mehdi & Mozafari, Babak & Bashirvand, Mahdi & Solaymani, Soodabeh & Ranjbar, Ali Mohamad, 2012. "Designing time-of-use program based on stochastic security constrained unit commitment considering reliability index," Energy, Elsevier, vol. 41(1), pages 541-548.
    10. Derya Eryilmaz, Timothy M. Smith, and Frances R. Homans, 2017. "Price Responsiveness in Electricity Markets: Implications for Demand Response in the Midwest," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    11. Wang, Yong & Li, Lin, 2015. "Time-of-use electricity pricing for industrial customers: A survey of U.S. utilities," Applied Energy, Elsevier, vol. 149(C), pages 89-103.
    12. Pina, André & Silva, Carlos & Ferrão, Paulo, 2012. "The impact of demand side management strategies in the penetration of renewable electricity," Energy, Elsevier, vol. 41(1), pages 128-137.
    13. Olmos, Luis & Ruester, Sophia & Liong, Siok-Jen & Glachant, Jean-Michel, 2011. "Energy efficiency actions related to the rollout of smart meters for small consumers, application to the Austrian system," Energy, Elsevier, vol. 36(7), pages 4396-4409.
    14. Li, Lanlan & Gong, Chengzhu & Wang, Deyun & Zhu, Kejun, 2013. "Multi-agent simulation of the time-of-use pricing policy in an urban natural gas pipeline network: A case study of Zhengzhou," Energy, Elsevier, vol. 52(C), pages 37-43.
    15. Jiang, Bo & Farid, Amro M. & Youcef-Toumi, Kamal, 2015. "Demand side management in a day-ahead wholesale market: A comparison of industrial & social welfare approaches," Applied Energy, Elsevier, vol. 156(C), pages 642-654.
    16. Faria, P. & Vale, Z., 2011. "Demand response in electrical energy supply: An optimal real time pricing approach," Energy, Elsevier, vol. 36(8), pages 5374-5384.
    17. Cortés-Arcos, Tomás & Bernal-Agustín, José L. & Dufo-López, Rodolfo & Lujano-Rojas, Juan M. & Contreras, Javier, 2017. "Multi-objective demand response to real-time prices (RTP) using a task scheduling methodology," Energy, Elsevier, vol. 138(C), pages 19-31.
    18. Copiello, Sergio, 2017. "Building energy efficiency: A research branch made of paradoxes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1064-1076.
    19. Yang, Chi-Jen, 2017. "Opportunities and barriers to demand response in China," Resources, Conservation & Recycling, Elsevier, vol. 121(C), pages 51-55.
    20. Colak, Ilhami & Sagiroglu, Seref & Fulli, Gianluca & Yesilbudak, Mehmet & Covrig, Catalin-Felix, 2016. "A survey on the critical issues in smart grid technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 396-405.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:engenv:v:29:y:2018:i:5:p:706-731. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.