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

Author

Listed:
  • Aoife Brophy Haney

    (ESRC Electricity Policy Research Group and Judge Business School, University of Cambridge)

  • Tooraj Jamasb

    (ESRC Electricity Policy Research Group and Faculty of Economics, University of Cambridge)

  • Laura M. Platchkov

    (ESRC Electricity Policy Research Group and Faculty of Economics, University of Cambridge)

  • Michael G. Pollitt

    (ESRC Electricity Policy Research Group and Judge Business School, University of Cambridge)

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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Aoife Brophy Haney & Tooraj Jamasb & Laura M. Platchkov & Michael G. Pollitt, 2010. "Demand-side Management Strategies and the Residential Sector: Lessons from International Experience," Working Papers EPRG 1034, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    • Handle: RePEc:enp:wpaper:eprg1034
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.

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    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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