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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. The authors first look at key features of residential energy demand and the limits to energy indicators. The authors 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.
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