Warren, P; (2015) Demand-Side Management Policy: Mechanisms for Success and Failure. Doctoral thesis , UCL (University College London).

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Abstract

Demand-side management (DSM) refers to activities undertaken on the demand-side of energy meters that seek to meet energy policy objectives. The policy side of DSM has received limited attention in the academic literature, with previous research focussing on technological trials, utility programmes and modelling studies of the potential of DSM. Within the field of DSM policy evaluation, much of the work has concentrated on policy impacts rather than policy mechanisms. The thesis contributes to filling this research gap by determining the key factors for success and failure for various DSM policies and countries (and sub-national states). A global systematic review of the DSM policy evaluation evidence was conducted. The method included the critical appraisal of the quality of the evidence base and the final sample included 119 high quality documents (covering 690 evaluations) from 35 databases, covering 30 countries, 36 sub-national states, and 21 individual DSM policies and policy packages. A technique was developed to combine factor frequency and weighting analyses in order to establish the success and failure factors that were both frequent and highly weighted for given DSM policies and countries/states. Overall, across policies and countries/states, regulatory frameworks and appropriate incentives are the most crucial success factors, and a lack of monitoring and technical issues (primarily programme management issues) are the most crucial failure factors. California, China, the UK and the USA have experienced the greatest success with DSM policies, each having successfully implemented and evaluated 9-10 policies. Utility obligations, performance standards and alternative utility business models have been the most successful policies overall, whilst labelling, information campaigns, and loans and subsidies have been the least successful. However, all policies show examples of both success and failure in specific contexts and the research has identified which key factors cause various demand-side policies to succeed or fail.

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