What factors affect the demand for and supply of energy?
The demand for energy is determined by a mix of factors, the importance of which depend on the fuel supply involved and the time of the year. Individual factors influence the direction — up and down — as well as the volatility of demand. The supply of energy is also shaped by multiple factors, many of which are inter-related and parallel those that affect demand. Figure I-13 summarizes the major factors shaping the supply of and demand for energy. In general terms, the components shown in Figure I-13 can be grouped into five categories: • structural — technological or societal changes that cause consumption requirements to shift (e.g., use of electricity versus manual power for a task or the creation of new reasons to use energy); • governmental — local, state, and federal controls and legislative policy decisions (e.g., siting regulations, electric deregulation provisions, and tax incentives for renewable energy); • individual — decisions made by consumers regarding how and when
