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Demand-side Management Strategies and the Residential Sector: Lessons from International Experience

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  • Brophy Haney, A.
  • Jamasb, T.
  • Platchkov, L.M.
  • Pollitt, M.G.

Abstract

This paper explores demand side management (DSM) strategies, including both demand response and energy efficiency policies. The aim is to uncover what features might strengthen DSM effectiveness. We first look at key features of residential energy demand and the limits to energy indicators. We then turn to historical energy intensity trends in the sector which uncover its large untapped potential. A range of barriers to energy efficiency accounting for this gap are surveyed as well as a number of potential policy responses. This reveals the necessity of a portfolio approach with bundled strategies that simultaneously impact different parts of the market, enhance the strengths of individual measures while compensating for their weaknesses through the use of complementary policies. Evidence from the international experience, in Denmark, Germany, Japan, and US is reviewed. This helps us to contrast and shed some light on the UK experience. We conclude with an emphasis on the need for a holistic underpinning approach and the indentification of a number of attributes that reinforce DSM strategies.

Suggested Citation

  • Brophy Haney, A. & Jamasb, T. & Platchkov, L.M. & Pollitt, M.G., 2010. "Demand-side Management Strategies and the Residential Sector: Lessons from International Experience," Cambridge Working Papers in Economics 1060, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:1060
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    References listed on IDEAS

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    1. Tooraj Jamasb & Helena Meier, 2010. "Energy Spending and Vulnerable Households," Working Papers EPRG 1101, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    2. Alam, Manzoor & Sathaye, Jayant & Barnes, Doug, 1998. "Urban household energy use in India: efficiency and policy implications," Energy Policy, Elsevier, vol. 26(11), pages 885-891, September.
    3. Jamasb,Tooraj & Pollitt,Michael G. (ed.), 2011. "The Future of Electricity Demand," Cambridge Books, Cambridge University Press, number 9781107008502.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Igor Bayev & Irina Solovyeva & Anatoliy Dzyuba, 2018. "Cost-Effective Management of Electricity Transmission in an Industrial Region," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 955-969.
    2. Matthew, George Jr. & Nuttall, William J & Mestel, Ben & Dooley, Laurence S, 2017. "A dynamic simulation of low-carbon policy influences on endogenous electricity demand in an isolated island system," Energy Policy, Elsevier, vol. 109(C), pages 121-131.
    3. Laura Platchkov & Michael G. Pollitt & David Reiner & Irina Shaorshadze, 2011. "2010 EPRG Public Opinion Survey: Policy Preferences and Energy Saving Measures," Working Papers EPRG 1122, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    4. Rangoni, Bernardo, 2012. "A contribution on electricity storage: The case of hydro-pumped storage appraisal and commissioning in Italy and Spain," Utilities Policy, Elsevier, vol. 23(C), pages 31-39.
    5. Sousa, José L. & Martins, António G. & Jorge, Humberto M., 2013. "World-wide non-mandatory involvement of electricity utilities in the promotion of energy efficiency and the Portuguese experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 319-331.
    6. 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.
    7. Sousa, José Luís & Martins, António Gomes & Jorge, Humberto, 2013. "Dealing with the paradox of energy efficiency promotion by electric utilities," Energy, Elsevier, vol. 57(C), pages 251-258.
    8. Greta Vallero & Margot Deruyck & Michela Meo & Wout Joseph, 2018. "Accounting for Energy Cost When Designing Energy-Efficient Wireless Access Networks," Energies, MDPI, vol. 11(3), pages 1-21, March.
    9. Andaluz-Alcazar, Alvaro, 2012. "Choix d'investissement sous incertitude des gestionnaires des réseaux de distribution (GRD) en Europe à l'horizon 2030," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/10862 edited by Keppler, Jan Horst.

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    More about this item

    Keywords

    Electricity; heat; energy policies; demand-side management; energy efficiency; residential sector; portfolio approach;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • D10 - Microeconomics - - Household Behavior - - - General

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