The interests of microgrid users driven by incentive-based demand response are incorporated into the classic environmental economic dispatch model. An improved electricity satisfaction model for users with diverse mixed loads is proposed, serving as a metric to evaluate user-side benefits. A multi-objective dispatch model is established with the goals of minimizing system operating costs, environmental costs, and maximizing user electricity satisfaction. In order to improve the performance of the grey wolf optimization algorithm in solving multi-objective problems, the algorithm is improved by using strategies such as searching population variation factor and nonlinear cosine transform of convergence factor. Then the improved multi-objective grey wolf algorithm is applied to solve the multi-objective dispatch model. At the same time, the optimal compromise solution is selected from the Pareto solution set based on fuzzy set theory to analyze and compare the dispatch results of various load responses and different types of users. Finally, the simulation results demonstrate that a well-designed demand response mechanism can enhance both economic and environmental benefits while ensuring user satisfaction with electricity consumption. This approach achieves a win-win situation for the power system, the environment, and users benefits, offering valuable theoretical support for the development of a green and sustainable power management system.