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The Economics of Energy (and Electricity) Demand / Laura M. Platchkov and Michael G. Pollitt, Cambridge : EPRG, 2011, 39 p., EPRG1116http://www.eprg.group.cam.ac.uk/wp-content/uploads/2011/04/EPRG-WP-1116_complete1.pdfEconomic drivers, technologies and demand side management are keys in  understanding the long-term trends of both energy and more specifically  electricity consumption. This paper  discusses some of the important  economics foundations of energy demand in general, and electricity in  particular. First, we look at the macro-economic context of energy. This  reveals how energy and electricity consumption are subject to the same  drivers – income and price – over long periods. However, energy demand  (and carbon emissions) falls and energy prices rises in one country may  have little effect at the world level. Next, we examine the features of  energy service expenditures. Despite similarities over time, specific  sectors are distinct from one another in terms of consumption profiles,  and new sources of electricity demand may substantially change total  demand and the way it is consumed. This leads us to a closer look at the  micro-economic context of energy demand, and the tension between  technically possible energy savings one one side, and the economics and  behavioural dimensions on the other side. We conclude by highlighting  the various unknowns and uncertainties that characterise the future of  energy demand. (© EPRG)