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: The empirical results suggest that, in general, firm productivity has a positive and statistically significant impact on pollution emission in China, and confirms the positive influence of productivity on output, which suggests that the main determinant of pollution is the firm’s output.
Abstract: Using a theoretical model, this paper argues that as firm productivity increases, there is a decrease in firm-level pollution intensity. However, as productivity increases, firms tend to increase their aggregate output, which requires the use of additional resources that increase pollution. Hence, an increase in productivity results in two opposing effects where increased productivity may in fact increase pollution created by a firm. We describe the joint effect of these two mechanisms on pollution emissions as the "productivity dilemma" of pollution emission. Based on firm-level data from China, we also empirically test this productivity dilemma hypothesis. Our empirical results suggest that, in general, firm productivity has a positive and statistically significant impact on pollution emission in China. However, the impact of productivity on pollution becomes negative when we control for increases in firm output. The empirical evidence also confirms the positive influence of productivity on output, which suggests that the main determinant of pollution is the firm's output. The empirical results provide evidence of the existence of, what we describe as, the productivity dilemma of pollution emission.
18 citations
Cites background from "Energy efficiency and consumption —..."
...1 The rebound effect is defined as an increase in energy consumption in response to efficiency induced in the price of energy services (Greening et al. 2000; Lin and Li 2014)....
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...Therefore, the total cost for firm with productivity φ is (γx)/φ+f when its output is x. 1 The rebound effect is defined as an increase in energy consumption in response to efficiency induced in the price of energy services (Greening et al. 2000; Lin and Li 2014)....
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TL;DR: The authors show that general equilibrium channels typically amplify rebound by making consumption goods cheaper but typically dampen rebound by increasing demand for non-energy inputs to production and by changing the size of the energy supply sector.
18 citations
TL;DR: Based on the panel data of three industries in China, the authors calculates the energy rebound effect arising from energy efficiency improvement, by stripping the rebound of energy usage caused by industrial restructuring from model.
18 citations
TL;DR: Wang et al. as discussed by the authors analyzed the rebound effect of energy consumption of all three main industries sector in China and found that the first two curves were the most critical factors for the energy consumption intensity.
Abstract: Technological innovation plays a crucial role for improving energy efficiency But the excessive energy consumption has presented a significant challenge at the same time, which indicates that the direct energy rebound effect exists in China Cobb-Douglas production function and Logarithmic Mean Divisia Index decomposition model are employed to analyze the rebound effect of energy consumption of all three main industries sector in China The results show that total technological effect curve and total substitution effect curve fluctuated more significantly than total structure effect curve from 1991 to 2014The first two curves were the most critical factors for the energy consumption intensity Stabilizing energy prices, developing new and renewable energy and implementing policies related to energy conservation and emission reduction are effective measures to reduce energy consumption intensity More attention should be paid to the growing demand for living energy consumption derived from the rapid development of the tertiary industry The direct rebound effect of energy consumption in China showed an overall descending trend This shows that technological effect has well prevented the growth of energy consumption Direct energy rebound effect can be controlled effectively by means of formulating and implementing the corresponding energy related policies
18 citations
Cites background from "Energy efficiency and consumption —..."
...In terms of the mechanism, the energy rebound effect is divided into direct rebound effect, indirect rebound effect and economy-wide [10]....
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01 Jan 2012
TL;DR: In this article, W. S. Jevons described the use of energy as a problem in the ekonomies of the world, and described the problem of energy exploitation as a value maximization problem.
Abstract: Polityka energetyczna Unii Europejskiej w duzym stopniu nastawiona jest na rozwiązywanie problemow wykorzystania i pozyskiwania energii. Dla krajow wysokorozwinietych charakterystyczna jest duza efektywnośc wykorzystania energii, mierzona chociazby za pomocą wskaźnikow energochlonności PKB (pierwotnej czy finalnej). Tym niemniej, gospodarki Unii Europejskiej nadal pozostają najwiekszymi konsumentami, stale zwiekszając wykorzystanie zasobow energetycznych. Ten problem poruszal juz W. S. Jevons w 1865 r. w swojej pracy podejmującej kwestie wydobycia i konsumpcji wegla w Anglii. Jego spostrzezenia funkcjonują dzisiaj w ekonomii pod pojeciem paradoksu Jevons‘a: postep technologiczny związany ze wzrostem efektywności wyko-rzystywania danego zasobu prowadzi zwykle do zwiekszenia konsumpcji tego zasobu. Wiele wspolczesnych rozwazan naukowych i politycznych skupia sie na problematyce zmian klimatycznych z perspektywy radzenia sobie z problematyką gazow cieplarnianych, uwalnianych do środowiska w wyniku procesow produkcji i kon-sumpcji. Strategia ta przypomina polityke ochrony środowiska określaną, jako polityka konca rury czestokroc wskazując na wykorzystanie źrodel energii odnawialnej, jako panaceum dla rozwiązania tego problemu. Niniej-sza praca wskazuje na koniecznośc holistycznego ujmowania problematyki ochrony środowiska z perspektywy koncepcji rozwoju zrownowazonego. Wykorzystanie zasobow energii odnawialnej, bez powiązania z dzialania-mi w zakresie procesow charakterystycznych dla rozwoju spoleczno-gospodarczego, moze okazac sie jedynie kolejną niezrownowazoną strategią rozwoju, zgodnie z trendami w tym zakresie wskazywanymi przez W. S. Jevons’a. Dlatego artykul wskazuje na koniecznośc precyzyjnego dostosowywania polityki spoleczno-ekonomicznej Unii Europejskiej do sytuacji krajow czlonkowskich oraz wskazuje na konsekwencje wykorzysta-nia energii odnawialnej w kontekście mozliwych trendow towarzyszących postepowi technologicznemu.The energy policy of the European Union is focused on the problems of use and acquisition of energy resources. The most developed member countries can be characterized by high energy efficiency, which can be measured by such indexes as the final or primary energy consumption per total value of production (i.e. GDP). However, the economies of the European Union are still the largest consumers which are increasing the volume of the energy resources use. This problem were described by W. S. Jevons in 1865 in his work on the exploitation and consumption of English coal resources. His research is presented nowadays in economics as Jevons effect: technological advances lead to an increase of resource efficiency which results in an increase of the resource consumption. Many contemporary scientific and political disputes are focused on the problem of the climate change and the greenhouse gases which are released to the environment as a consequence of production and consumption processes. The strategy is similar to the environmental measures termed as the end of pipe policy where using of renewable energy resources are often seen as a panacea for all the problems. This paper indicates the needs for adopting a holistic perspective to solve environmental problems, which has been postulated in the conception of sustainable development. Otherwise, the use of renewable energy resources which doesn’t comply with the socio-economic processes could be the next unsustainable development strategy, according to the trends presented by W. S. Jevons. As a result of the research the need of precise adaptation of EU’s socio-economic policy to the situation in particular member countries is underlined, especially in relation to the consequences of using of renewable energy and the trends attributed to technological progress.
17 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