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Demand response: A carbon-neutral resource?

Alexander M. Smith and Marilyn A. Brown

Energy, 2015, vol. 85, issue C, 10-22

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.

Keywords: Demand response; Electric power; Carbon dioxide emissions; Load management (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:85:y:2015:i:c:p:10-22

DOI: 10.1016/j.energy.2015.02.067

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