Beyond optimisation: Revisiting energy demand management

Abstract

Energy demand reduction (EDR) in households has re-emerged as a central pillar of climate and energy transition strategies in Europe and beyond. While energy efficiency has long dominated policy frameworks, growing evidence shows that efficiency alone is insufficient to achieve absolute reductions in energy consumption due to persistent rebound effects, lock-in dynamics, and equity concerns. This paper presents a systematic literature review of 137 studies published between 2004 and 2024, selected through a PRISMA-guided process with expert validation. The review adopts a structured, question-driven framework and a hybrid methodology combining AI-assisted analysis with expert synthesis. Three perspectives, energy efficiency, energy sufficiency, and behavioural change, are used as analytical lenses to identify complementarities and limitations in current EDR approaches. Findings indicate that effective EDR strategies require integrated technological, behavioural, and policy measures. Key enablers identified in the literature include fiscal incentives and digital technologies, while major barriers involve financial constraints, behavioural inertia, and fragmented governance. The reviewed studies further suggest that energy demand reductions of 37–61% may be achievable across different contexts and scenarios, although only through coordinated and systemic approaches. The review also highlights important co-benefits, including reduced energy poverty, improved health, greater energy independence, and enhanced energy security. However, EDR strategies may also generate rebound effects and unequal distributions of costs and benefits. Overall, the findings underline the importance of embedding EDR within justice-oriented and socially inclusive policy frameworks to support both climate mitigation and broader societal resilience.