Energy efficiency and consumption — the rebound effect — a survey
TL;DR: In this paper, a review of some of the relevant literature from the US offers definitions and identifies sources including direct, secondary, and economy-wide sources and concludes that the range of estimates for the size of the rebound effect is very low to moderate.
About: This article is published in Energy Policy.The article was published on 2000-06-01. It has received 1867 citations till now. The article focuses on the topics: Rebound effect (conservation) & Energy consumption.
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TL;DR: In this article, an alternative estimation model based on neoclassical economic theory was adopted to measure the energy rebound effect of industrial enterprises in the Beijing-Tianjin-Hebei (BTH) region from 1996 to 2015.
Abstract: High energy conservation and emission reduction (ECER) requirements across industries in the Beijing–Tianjin–Hebei (BTH) region have been proposed along with the transformation of China’s economic development mode. However, the energy consumption rebound effect, as an important proxy for achieving sustainable low-carbon development, has not been adequately investigated across industrial enterprises in this area. This study adopts an alternative estimation model based on neoclassical economic theory to measure the energy rebound effect of industrial enterprises in the BTH region from 1996 to 2015. Four main results are obtained. First, the energy rebound effects in Beijing, Tianjin, and Hebei are significantly different in the temporal and spatial dimensions. Second, technological progress does not reduce energy consumption, and the local government must simultaneously consider technological progress, industrial structure, and policy formulation to achieve the ECER goals. Third, ECER policies combined with government administrative measures do not have an impact on reducing energy consumption. Fourth, in the process of implementing the integration development of the BTH region, Hebei faces greater pressure to attain ECER goals in the future than the other regions. This study provides suggestions based on these derived results from the perspectives of market-oriented measures, management factors, development mode, and regional cooperation to achieve the sustainable development of the BTH region.
30 citations
TL;DR: In this paper, the authors developed a novel typology of rebound mechanisms based on a critical review of existing classifications, which introduces an important differentiation between the rebound mechanisms, which generate changes in energy consumption, and the rebound effects, which describe the size of such changes.
Abstract: Literature on the rebound phenomenon has grown significantly over the last decade. However, the field is characterized by diverse and ambiguous definitions and by substantial discrepancies in empirical estimates and policy proposals. As a result, cumulative knowledge production is difficult. To address these issues, this article develops a novel typology. Based on a critical review of existing classifications, the typology introduces an important differentiation between the rebound mechanisms, which generate changes in energy consumption, and the rebound effects, which describe the size of such changes. Both rebound mechanisms and rebound effects can be analytically related to four economic levels – micro, meso, macro and global – and two time frames – short run and long run. The typology is populated with eighteen rebound mechanisms from the literature. This contribution is the first that transparently describes its criteria and methodology for developing a rebound typology and that gives clear definitions of all terms involved. The resulting rebound typology aims to establish common conceptual ground for future research on the rebound phenomenon and for developing rebound mitigation policies.
30 citations
TL;DR: In this article, the authors introduced a life cycle based method to estimate the rebound effect of Chinese RACs consumption, which provided a product's life-cycle view to assess the rebound effects, considering the contribution of both producer and consumer.
30 citations
Cites background from "Energy efficiency and consumption —..."
...Four types of rebound effects are identified in both the microeconomic and macroeconomic perspectives in the literature [9,11]: direct rebound effects, indirect rebound effects, economy-wide effects and transformational effects....
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01 Jan 2016
TL;DR: In this paper, the authors suggest rethinking current climate, energy and sustainability policy-making by presenting new insights into the rebound phenomenon; i.e. driving forces, mechanisms and extent of rebound effects and possible ways to mitigate these effects.
Abstract: This volume suggests rethinking current climate, energy and sustainability policy-making by presenting new insights into the rebound phenomenon; i.e. driving forces, mechanisms and extent of rebound effects and possible ways to mitigate these effects. It pursues an innovative and novel approach to the political and scientific rebound discourse and, hence, supplements the current state of knowledge discussed in the field of energy economics and recent reports by the Intergovernmental Panel on Climate Change. Building on the realm of rebound publications from the past four decades, this volume contributes in three particular ways: Part I offers new aspects in rebound economics by presenting insights into issues that have so far not been satisfactorily researched, such as rebounds in countries of the Global South, rebounds at the producer side, as well as rebounds from sufficiency behaviour (as opposed to rebounds from technical efficiency improvements). Part II goes beyond the conventional economic rebound research and explores multidisciplinary perspectives on the phenomenon, in particular from psychology and sociology. Advancing such multidisciplinary perspectives delivers a more comprehensive understanding of rebound driving forces, mechanisms and policy options. Part III puts rebounds into praxis and presents several policy cases and sector-specific approaches, including labour markets, urban planning, tourism, information and communication technologies, and transport. The volume finally embeds the issue into a larger debate on decoupling, green growth and degrowth, and sketches out lessons learned for sustainable development strategies and policies at large. Employing such widespread and in-depth analysis, this volume makes an essential contribution to the discussion of the overall question: Can resource use, energy use and greenhouse gas emissions be substantially reduced without challenging economic growth?
30 citations
TL;DR: In this paper, the authors examined the variation of fuel price elasticity of vehicle miles travelled (VMT) across income groups and compared the relative magnitudes of the fuel price and the rebound effect.
Abstract: The effects of fuel price on travel demand for different income groups reveal the choices and constraints they are faced with. The first purpose of this study is to understand these underlying choices and constraints by examining the variation of fuel price elasticity of vehicle miles travelled (VMT) across income groups. On the other hand, the rebound effect—increase in VMT as a result of improvement in fuel efficiency may offset the negative effect of fuel price on VMT. The second purpose of this study is to compare the relative magnitudes of the fuel price elasticity of VMT and the rebound effect. A system of structural equations with VMT and fuel efficiency (MPG, miles per gallon) as endogenous variables is estimated for households at different income levels from 2009 National Household Travel Survey. Higher income households show greater fuel price elasticity than lower income households. Fuel price elasticities are found to be −0.41 and −0.35 for the two highest income groups, while an elasticity of −0.24 for the lowest income group is identified. The rebound effect is found to be only significant for the lowest income households as 0.7. These findings suggest the potential ability of using fuel price as a tool to affect VMT. The study results also suggest possible negative consequences faced by lower income households given an increase in fuel price and call for more studies in this area.
30 citations
References
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Book•
01 Jan 1980
TL;DR: Deaton and Muellbauer as mentioned in this paper introduced generations of students to the economic theory of consumer behaviour and used it in applied econometrics, including consumer index numbers, household characteristics, demand, and household welfare comparisons.
Abstract: This classic text has introduced generations of students to the economic theory of consumer behaviour. Written by 2015 Nobel Laureate Angus Deaton and John Muellbauer, the book begins with a self-contained presentation of the basic theory and its use in applied econometrics. These early chapters also include elementary extensions of the theory to labour supply, durable goods, the consumption function, and rationing. The rest of the book is divided into three parts. In the first of these the authors discuss restrictions on choice and aggregation problems. The next part consists of chapters on consumer index numbers; household characteristics, demand, and household welfare comparisons; and social welfare and inequality. The last part extends the coverage of consumer behaviour to include the quality of goods and household production theory, labour supply and human capital theory, the consumption function and intertemporal choice, the demand for durable goods, and choice under uncertainty.
3,952 citations
TL;DR: In this article, an industrial demand for energy is essentially a derived demand: the firm's demand for the energy is an input, derived from demand for a firm's output, which is an output.
Abstract: Industrial demand for energy is essentially a derived demand: the firm's demand for energy is an input is derived from demand for the firm's output. Inputs other than energy typically also enter the firm's production process. Since firms tend to choose that bundle of inputs which minimized the total cost of producing a giving level of output, the derived demand for inputs, including energy, depends on the level of output, the submitions possibilies among inputs allow by production technology, and the relative prices of all inputs.
1,422 citations
TL;DR: In this article, a model of individual behavior in the purchase and utilization of energy-using durables is presented, where the tradeoff between capital costs for more energy efficient appliances and operating costs for the appliances is emphasized.
Abstract: This article presents a model of individual behavior in the purchase and utilization of energy-using durables. The tradeoff between capital costs for more energy efficient appliances and operating costs for the appliances is emphasized. Using data on both the purchase and utilization of room air conditioners, the model is applied to a sample of households. The utilization equation indicates a relatively low price elasticity. The purchase equation, based on a discrete choice model, demonstrates that individuals do trade off capital costs and expected operating costs. The results also show that individuals use a discount rate of about 20 percent in making the tradeoff decision and that the discount rate varies inversely with income.
1,361 citations
TL;DR: In this article, the authors argue that the indiscriminate use of mandated standards will backfire, but a mix of selective standards and reliance on prices as a restraint can be effective.
Abstract: Regulations which mandate appliance efficiency standards may be based on calculations which exaggerate the potential energy savings. Improved efficiency can, in fact, increase demand enough to be counterproductive unless the standards are applied selectively. As appliances improve, they are used more, new stock is demanded, and the demand for and use of related equipment increases. The policy implications of these empirical studies are that the indiscriminate use of mandated standards will backfire, but a mix of selective standards and reliance on prices as a restraint can be effective. 11 references, 5 figures, 2 tables. (DCK)
802 citations
Posted Content•
TL;DR: In this article, the authors present a detailed study of automobile demand and use, presenting forecasts based on the powerful new techniques of qualitative choice analysis and standard regression techniques, which are combined to analyze situations that neither alone can accurately forecast.
Abstract: This book addresses two significant research areas in an interdependent fashion. It is first of all a comprehensive but concise text that covers the recently developed and widely applicable methods of qualitative choice analysis, illustrating the general theory through simulation models of automobile demand and use. It is also a detailed study of automobile demand and use, presenting forecasts based on these powerful new techniques. The book develops the general principles that underlie qualitative choice models that are now being applied in numerous fields in addition to transportation, such as housing, labor, energy, communications, and criminology. The general form, derivation, and estimation of qualitative choice models are explained, and the major models - logit, probit, and GEV - are discussed in detail. And continuous/discrete models are introduced. In these, qualitative choice methods and standard regression techniques are combined to analyze situations that neither alone can accurately forecast. Summarizing previous research on auto demand, the book shows how qualitative choice methods can be used by applying them to specific auto-related decisions as the aggregate of individuals' choices. The simulation model that is constructed is a significant improvement over older models, and should prove more useful to agencies and organizations requiring accurate forecasting of auto demand and use for planning and policy development. The book concludes with an actual case study based on a model designed for the investigations of the California Energy Commission.
726 citations