Using behavioural economic theory in modelling of demand response

•Suitability of behavioural economics in modelling of demand response is critiqued.•Effect of biases and preferences on the modelling of demand response is studied.•Consideration of consumer biases affects results of demand response modelling.•Appealing to pro-social preferences is more efficacious than buying demand response.•Incentives may crowd out pro-social attitudes, increasing cost of demand response.