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, the authors look at NGOs activities in sustainable production and consumption and obstacles being faced and identify lessons for policymakers seeking to engage civil society and make recommendations on how academics can co-operate more effectively with civil society.
Abstract: The paper looks at NGOs activities in Sustainable Production and Consumption and obstacles being faced. It identifies lessons for policymakers seeking to engage civil society and makes recommendations on how academics can co-operate more effectively with civil society. Insights are drawn from recent studies on stakeholder involvement in the international political process and a series of surveys and semi-structured interviews. The authors identify four challenges. Effort should • be planned more strategically • link sustainable consumption to current priorities • ensure better links between global and local and • NGOs have to better link to other interest groups.
16 citations
Cites background from "Energy efficiency and consumption —..."
...As research on the so-called rebound effect has documented, achievements based on efficiency alone are very often overcompensated by a growth in consumption volumes (Greening et al., 2000)....
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TL;DR: In this paper, the authors review the arguments of skeptics and advocates on 10 key questions concerning energy efficiency, attempting to answer three overriding questions: does an EE gap exist, how big is the gap, and how can the gap be shrunk?
Abstract: Energy efficiency (EE) is rapidly growing in many markets today, but its its cost-effectiveness and potential for growth are being hotly debated. These controversies impede public and private investment in efficiency programs, products, and services. As the stakes rise, the debate has heated up and the need grows to clarify the disagreements and disputes. We review the arguments of skeptics and advocates on 10 key questions concerning energy efficiency, attempting to answer three overriding questions: does an EE gap exist, how big is the gap, and how can the gap be shrunk? We tackle 10 areas of contention: the significance of market failures, the efficiency of investment levels, energy intensity as a measure of efficiency, the treatment of naturally occurring EE, the application of discount rates, accounting for transaction costs, treatment of the rebound effect, the practice of EE delivery, the integration of EE into utility business models, and opportunities for EE growth. Research needs in each of these areas are also described. By examining the divergent views of skeptics and advocates and by addressing the limitations of current knowledge, policymakers and stakeholders can make better-informed decisions supported by more defensible analysis.
16 citations
TL;DR: In this paper, the authors developed a model that integrates the carbon cycle with economic activities in the 2002 U.S. economy, including emissions and sequestration flows, from the greenhouse gas inventory of the Environmental Protection Agency.
Abstract: Biogeochemical cycles are essential ecosystem services that continue to degrade as a result of human activities, but are not fully considered in efforts toward sustainable engineering. This article develops a model that integrates the carbon cycle with economic activities in the 2002 U.S. economy. Data about the carbon cycle, including emissions and sequestration flows, is obtained from the greenhouse gas inventory of the U.S. Environmental Protection Agency. Economic activities are captured by the economic input-output model available from the Bureau of Economic Analysis. The resulting model is more comprehensive in its accounting for the carbon cycle than existing methods for carbon footprint (CF) calculations. Examples of unique flows in this model include the effect of land-use and land-cover change on carbon dioxide flow within the U.S. national boundary, carbon sequestration in urban trees, and emissions resulting from liming. This model is used to gain unique insight into the carbon profile of U.S. economic sectors by providing the life cycle emissions and sequestration in each sector. Such insight may be used to support policies, manage supply chains, and be used for more comprehensive CF calculations.
16 citations
Cites background from "Energy efficiency and consumption —..."
...This further supports the view that economic production size can offset gain by reducing intensity, which has been studied as a rebound effect (Greening et al. 2000); thus, solutions other than just reducing intensity should be explored....
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TL;DR: In this article, a large sample of residential PV installations was used to test for a possible rebound effect, showing that a large proportion of households oversized their installation to benefit from the subsidies and, later ended up consuming most of their excess production.
16 citations
01 Jan 2010
TL;DR: In this paper, the authors point out that by focusing on discrete actions, the Government risks failing to take account of the Rebound Effect, a phenomenon whereby carbon reductions calculated by simple engineering calculations are frequently not realised in practice.
Abstract: Households are expected to play a pivotal role in reducing the UK’s carbon emissions, and the Government is targeting specific household actions to help meet
its targets. However, by focusing on discrete actions, the Government risks failing to take account of the Rebound Effect – a phenomenon whereby carbon reductions
estimated by simple engineering calculations are frequently not realised in practice.
For example, replacing short car journeys by walking or cycling reduces consumption of personal transportation fuels. But this frees up money that may be spent on, for example, purchasing extra clothes or flying on vacation. Alternatively it may be put into savings. These options all give rise to carbon emissions, thus the total carbon saved may be less than predicted. Indeed, in some instances, emissions may even increase – this being known as ‘Backfire’. We estimate that the rebound effect for a set of three abatement actions is 34%. In the best case studied this may be reduced to 12%, but in extreme cases backfire may occur. Our study points to two key strategies to minimise rebound: to encourage households to shift patterns of consumption to lower GHG intensive categories; and to encourage households to invest in low carbon investments.
16 citations
Cites background or methods from "Energy efficiency and consumption —..."
...This socalled direct rebound effect was first studied by Khazzoom (1980) and has since been the focus of much research (Greening et al. 2000; Sorrell and Dimitropoulos 2007b; Sorrell and Dimitropoulos 2008; Sorrell et al. 2009)....
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...For further information about our research programme or the RESOLVE Working Paper series please visit our web site http://www.surrey.ac.uk/resolve...
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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