Abstract: On condition of modern electric marketization, demand response has become an important tool to alleviate contradiction between supply and demand, reduce peak load and promote energy saving and emission reduction. By reviewing the literature, the paper found that there is basically no research of certain policy implications practiced in China, while the research and policies have already been carried out in developed countries. Therefore, there is a gaping need to promote the reform of electrical industry and the research on experimental design, strategy, technical specification and evaluation tool. Specifically, attention should be drawn to several aspects, which are the following: demand response should be classified into incentive, price and information feedback based on the incentive method in practice; controlling the market force of electricity producers should be an important way for analyzing the benefit of demand response, the convenience and comfort issue, the payback response and the attenuation of responsiveness; the benefit of line loss reduction should be paid sufficient attention in policy making.