In this study, a stochastic programming model is proposed to optimize the performance of a smart micro grid in a short term to minimize operating costs and emissions with renewable sources. In order to achieve an accurate model, the use of a probability density function to predict the wind speed and solar irradiance is proposed. On the other hand, in order to resolve the power produced from the wind and the solar renewable uncertainty of sources, the use of demand response programs with the participation of residential, commercial and industrial consumers is proposed. In this paper, we recommend the use of incentive-based payments as price offer packages in order to implement demand response programs. Results of the simulation are considered in three different cases for the optimization of operational costs and emissions with/without the involvement of demand response. The multi-objective particle swarm optimization method is utilized to solve this problem. In order to validate the proposed model, it is employed on a sample smart micro-grid, and the obtained numerical results clearly indicate the impact of demand side management on reducing the effect of uncertainty induced by the predicted power generation using wind turbines and solar cells. (C) 2017 Elsevier Ltd. All rights reserved.