Demand Response Resources Are Not All They’re Made Out to Be: The Payback Effects Severely Reduce the Reported DRR Economic and Emission Benefits

While demand response curtailments result in lower loads, which reduce prices and emissions at specific nodes in the system during the curtailment hours, some portion of the curtailed energy is recovered in future hours, resulting in impacts on prices and emissions in those hours. The economic and emission impacts of energy recovery have important ramifications for DRR policy formulation.