Discussion
None of the following is a policy instrument acting on the demand side except
Answer: D
Correct answer: appliance efficiency labelling
Labelling acts on demand: it changes what consumers buy and therefore how much energy is needed. The other three all act on supply - adding generating capacity, expanding the transmission network and developing coal mining. The distinction matters because demand-side measures are usually cheaper per unit and faster to take effect, which is exactly the negawatt argument.
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