Industrial electricity demand and energy efficiency policy: The role of price changes and private R&D in the Swedish pulp and paper industry

► We analyze electricity demand behaviour in the Swedish pulp and paper industry. ► An important context is the voluntary energy efficiency programs PFE. ► The electricity savings following PFE are significant, but price responses are low. ► Still, already in a baseline setting firms tend to invest in electricity-saving R&D. ► These baseline issues are not adequately addressed in PFE.