Demand sector policies are policies applying to one or more of the residential, commercial, industrial, and transportation sectors. They are typically designed to reduce energy consumption or emissions through changing usage patterns, increasing energy efficiency (through codes, standards, programs or incentives), or promoting cleaner fuel choices. Specific examples include building codes, vehicle efficiency standards, energy efficiency programs that promote compact fluorescent lighting, incentives for fuel switching to geothermal heating systems or solar panels, and many more.

Types of Demand Sector Policies