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 paper, the authors take a look at the possible evolution of the Spanish electricity sector under different policy scenarios, and try to identify which are the policies that may help to achieve the desired goal, as well as the role that the different technologies may play.
23 citations
Cites background from "Energy efficiency and consumption —..."
...Greening et al (2000) , or 4CMR (2006)), its impact is relatively minor, it can be safely assumed that the proposed reductions for Spain can be achieved....
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TL;DR: Wang et al. as discussed by the authors adopted the price-gap approach to estimate the scale of electricity subsidy and found that residential electricity subsidy in China amounted to 467.17 billion CNY (Chinese yuan), accounting for 1.17% of GDP in that year.
Abstract: China’s rapid economic growth causes a sharp increase in the demand for electricity. Electricity price in China is generally controlled at a low level by the government, leading to a substantial electricity subsidy. Electricity subsidy is the focus of energy price reform. It is also most closely linked with residential life and is a very sensitive issue to residents. This paper adopts the price-gap approach to estimate the scale of electricity subsidy and finds that in 2010, residential electricity subsidy in China amounted to 467.17 billion CNY (Chinese yuan), accounting for 1.17 % of GDP in that year. Subsequently, the paper estimates the impacts of residential electricity subsidy reform on the welfare of residents using the compensating variation (CV) measurement. The results show that if residential electricity price rises by 50, 100, 150, and 191 %, the CV should be 288.5, 394.2, 451.1, and 467.2 billion CNY, respectively. The residential electricity subsidy reform also has a moderating role in the rebound effect of electricity consumption. The direct rebound effect in China’s residential electricity consumption is 20 %. Electricity subsidy reform will raise terminal electricity price and restrain residential electricity consumption. Therefore, electricity subsidy reform should be an effective measure to mitigate the rebound effect.
23 citations
TL;DR: In this article, a dynamic two-good (clean and dirty goods), two-sector model was developed to explore the implications of the macroeconomic environmental rebound/backfire effect for environmentally-friendly product promotions on both the demand side and the supply side.
23 citations
Dissertation•
01 Jan 2016
TL;DR: In this paper, a case study of Perth, Western Australia, is used to examine how urban intensification is impacting on post-industrial cities, and it is concluded that walking in dense urban centres is the fundamental means of creating face-to-face interaction.
Abstract: ‘Linking the Knowledge Economy, Urban Intensity and Transport in Post-Industrial Cities with a Case Study of Perth’ As economies are transformed by growth in the knowledge-intensive economy, this thesis examines how urban intensification is impacting on post-industrial cities. While a global perspective is considered, a case study of Perth, Western Australia, is used. This thesis proposes that cities in post-industrial economies are characterised and driven by a multilayered intensification of knowledge. This includes: • intensification or agglomeration of knowledge economic activity; • intensification of human capital knowledge; and • intensification of the means of knowledge exchange i.e. Information and Communications Technology (ICT) systems and transport. The research concludes that post-industrial cities such as Perth are, in respect of the growing knowledge-intensive economy, returning to a monocentric urban structure. This is because of a market demand for urban centres that both facilitate economic agglomeration by increasing tacit knowledge exchange through face-to-face interaction and provide scale and knowledge intensity in the urban labour and service markets. The polycentric premise of accepted metropolitan planning is therefore questioned. An alternative urban structure is proposed for metropolitan scale cities, which includes a more targeted and focused polycentric approach. This is based on the intensification and densification of key urban centres around universities as the complementary centres for the central CBD. The intensification in cities is also shown to be occurring with urban transport. Consistent with the worldwide trend away from spatially inefficient private motor vehicle use, Perth is seeing an increase in spatially intense forms of transport with knowledge-intensive professional workers. It is concluded that walking in dense urban centres is the fundamental means of creating face-to-face interaction. In a knowledge-intensive economy, reliant on scale in labour and service markets, capacity for dense centres is provided by high capacity spatially efficient transport, of which rail is the most spatially efficient. This thesis is significant in that it suggests the need to rethink both the underlying premises for metropolitan spatial and transport planning in post-industrial cities.
23 citations
TL;DR: In this paper, an energy strategy based on energy end-use analysis and regional geography is proposed to match renewable energy resources with site-specific, enduse needs, while conserving fossil fuels and reducing environmental degradation.
Abstract: The production and use of fossil fuels and nonrenewable electricity creates many forms of environmental degradation. To reduce degradation, this research suggests an energy strategy based on energy end-use analysis and regional geography. Energy end-use analysis and regional geography are used to match renewable energy resources with site-specific, end-use needs. Fieldwork conducted within Centre County, Pennsylvania, demonstrates that small-scale solar, wind, and micro-hydropower resources could displace a proportion of household electricity use. Such an approach meets energy end-use needs, while conserving fossil fuels and reducing environmental degradation.
23 citations
Cites background from "Energy efficiency and consumption —..."
...Forwater heating, a 100% increase in fuel efficiency may result in a rebound between 10% and 40% due to some indirect effects such as the purchase of a larger water heating unit (Greening, Greene, and Difiglio 2000, 398)....
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...…of energy efficiency improvements is the rebound effect.10 The rebound effect occurs when the installation of more efficient equipment leads consumers to use more resources, instead of realizing the energy cost savings (Schipper 1996; Noreng 1996; Greening, Greene, and Difiglio 2000; Gottron 2001)....
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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