The invention discloses a power consumption estimation method considering a power consumption price elasticity matrix of an incentive mechanism. A power demand response comprising a price mechanism and the incentive mechanism at the same time is executed; the power consumption of a user is influenced by the price mechanism and the incentive mechanism; the power consumption price elasticity matrix and a power consumption incentive elasticity matrix are established; and calculation is performed by utilizing the two matrixes to obtain power consumption after execution of the two demand response mechanisms. The price mechanism and the incentive mechanism in the demand response are used in the power consumption price elasticity matrix at the same time, thereby guiding establishment of the price mechanism and the incentive mechanism of the demand response in a power system.