Energy Demand Management and Demand Response

  • Subhes C. BhattacharyyaEmail author


This chapter introduces the concepts related to management of energy demand and their economic analysis. It focuses on the demand management options and the economic decision making involved in demand management. It also introduces the concept of demand response and energy efficiency and presents the debate related to energy saving. The chapter also introduces a set of evaluation tests that are used to evaluate demand management programmes. Finally, the concept of rebound effect and the link between energy and other factors of production are presented.


Demand scenarios Demand management Energy saving potential Energy efficiency Demand response 


  1. Albadi, M. H., & El-Saadany, E. F. (2008). A summary of demand response in electricity markets. Electric Power Systems Research, 78(11), 1989–1996.CrossRefGoogle Scholar
  2. Bertoldi, P., & Rezessy, S. (2006). Tradable certificates for energy savings (White Certificates): Theory and practice. EUR 22196 EN, Institute for Environment and Sustainability, Directorate General, Joint Research Centre, European Commission.
  3. Bhattacharyya, S. C. (2018). Industrial energy use in Asia. In S. C. Bhattacharyya (Ed.), Routledge handbook of energy in Asia. Abingdon, UK: Routledge.Google Scholar
  4. Brown, M. (2001). Market failures and barriers as a basis for clean energy policies. Energy Policy, 29, 1197–1207.CrossRefGoogle Scholar
  5. Cattaneo, C. (2019). Internal and external barriers to energy efficiency: Which role for policy intervention. Energy Efficiency, 12, 1293–1311.CrossRefGoogle Scholar
  6. CRA. (2005). Primer on demand-side management, with an emphasis on price-responsive programs. Charles River Associates, California.
  7. CSPM. (2001). Economic analysis of demand-side management programs and projects. California Standard Practice Manual, California, USA.
  8. Gerarden, T. D., Newell, R. G., & Stavins, R. N. (2017). Assessing the energy-efficiency gap. Journal of Economic Literature, 55(4), 1486–1525.CrossRefGoogle Scholar
  9. Gillingham, K., Newell, R., & Palmer, K. (2009). Energy Efficiency economics and policy, RFF-DP-13. Washington, D.C.: Resources for the Future.CrossRefGoogle Scholar
  10. Golove, W. H., & Eto, J. H. (1997). Market barriers to energy efficiency: A critical reappraisal of the rationale for public policies to promote energy efficiency, Lawrence Berkeley National Laboratory, California.
  11. Grubb, M., Edmonds, J., Brink, P., & Morrison, M. (1993). The costs of limiting fossil fuel CO2 emissions: A survey and analysis. Annual Review of Energy and the Environment, 397–478.
  12. Herring, H. (2006). Energy Efficiency–A critical review. Energy, 31(1), 10–20.CrossRefGoogle Scholar
  13. Hogan, W. W., & Manne, A. S. (1977). Energy—Economy interactions: The fable of the elephant and the rabbit. Stanford: Energy Modelling Forum, Stanford University.Google Scholar
  14. Hurley, D., Peterson, P., & Whited, M. (2013). Demand response as a power system resource: Porgram designs, performance and lessons learned in the United States, Synapse Energy Economics for the Regulatory Assistance Project, Brussels.–03.RAP_.US-Demand-Response.12-080.pdf.
  15. IEA. (2001). Things that go blip in the night: Standby power and how to limit it. International Energy Agency, Paris.
  16. IEA. (2018a). World energy outlook 2018. Paris: International Energy Agency.Google Scholar
  17. IEA. (2018b). Energy efficiency 2018: Analysis and outlooks to 2040. International Energy Agency, Paris
  18. Jaffe, A. B., & Stavins, R. N. (1994). The energy-efficiency gap: What does it mean? Energy Policy, 22(10), 804–810.
  19. Munasinghe, M., & Schramm, G. (1983). Energy conservation and efficiency, Chapter 6 in Energy Economics, Demand Management and Conservation Policy. New York: Von Nostrand Reinhold Company.Google Scholar
  20. NERC. (2011). Demand response availability data system (DADS): Phase I and Phase II final report. North American Electric Reliability Corporation, Princeton, NJ.
  21. Paterson, M. G. (1996). What is energy efficiency? Concepts, indicators and methodological issues. Energy Policy, 24(5), 377–390.CrossRefGoogle Scholar
  22. Price, L., Galitsky, C., Sinton, J., Worrell, E., & Graus, W. (2005). Tax and fiscal policies for promotion of industrial energy efficiency: A survey of international experience, LNBL 58128, California.
  23. Saunders, H. (2009). Theoretical foundations of the rebound effect, Chapter 8. In J. Evans, & L. Hunt (Eds.) 2009, International Handbook on the Economics of Energy. Cheltenham, UK: Edward Elgar.Google Scholar
  24. Sorrel, S., 2009, The rebound effect: definition and estimation, Chapter 9. In J. Evans, & L. Hunt (Eds.) 2009, International Handbook on the Economics of Energy. Cheltenham, UK: Edward Elgar.Google Scholar
  25. Stenner, K., Frederiks, E. R., Hobman, E. V., & Cook, S. (2017). Willingness to participate in direct load control: The role of consumer distrust. Applied Energy, 189, 76–88.CrossRefGoogle Scholar
  26. Stoft, S. (1995). The economics of conserved energy supply curves, University of California Energy Institute, California.
  27. Stoll, H. G. (1989). Least-cost electric utility planning. New York: Wiley.Google Scholar
  28. Sutherland, R. J. (1994). Energy efficiency or the efficient use of energy resources. Energy Sources, 16(2), 257–268.CrossRefGoogle Scholar
  29. Swisher, J. N., Jannuzzi, G. M., & Redlinger, R. Y. (1997). Tools and methods for integrated resource planning: Improving energy efficiency and protecting the environment, UCCEE, Riso.
  30. Warren, P. (2014). A review of demand-side management policies in the UK. Renewable and Sustainable Energy Reviews, 29, 941–951.CrossRefGoogle Scholar
  31. WEC. (2001). Energy efficiency indicators and policies: A report by the WEC. London.
  32. Xu, X., Chen, C., Zhu, X., & Hu, Q. (2018). Promoting acceptance of direct load control programs in the United States: Financial incentive versus control option. Energy, 147, 1278–1287.CrossRefGoogle Scholar

Copyright information

© Springer-Verlag London Ltd., part of Springer Nature 2019

Authors and Affiliations

  1. 1.Institute of Energy and Sustainable DevelopmentDe Montfort UniversityLeicesterUK

Personalised recommendations