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 investigated the impact of three distinct policies (price reform, rationing, and fuel efficiency) on consumer responses in Iran and estimated price, income, and efficiency elasticities across household characteristics, income groups, and provinces using the AIDS model and the household expenditures data for the period 2005-2016.
15 citations
TL;DR: Wang et al. as discussed by the authors applied asymmetric price decomposition method and seemingly unrelated regression model to conduct the research, which showed that reducing capital cost is a more effective way than raising energy price for agricultural energy-saving goal.
15 citations
TL;DR: In this paper, a spatially lagged dependent variable is used to deal with the problem of spatial autocorrelation, linear and logarithmic functional forms, and a two-stage interpolation strategy is used for providing unbiased estimates of both the dispersion matrix and the t-statistics.
15 citations
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01 Jan 2018
TL;DR: This paper provided a conceptual and empirical overview of moral licensing, drawing comparisons with economic explanations for the rebound effect and concluded that consideration of moral license is warranted for judging the efficacy of policies targeted at energy consumption.
Abstract: The rebound effect denotes an offset in energy savings that occurs when an individual increases consumption of a good or service following an increase in its efficiency. It has both economic and psychological underpinnings: In addition to the price, income and substitution effects emphasized by economists, psychologists point to the influence of moral licensing, the cognitive process by which individuals justify immoral behavior (e.g. driving more) by having previously engaged in moral behavior (e.g. purchasing a more efficient car). The present review article provides a conceptual and empirical overview of moral licensing, drawing comparisons with economic explanations for the rebound effect. Based on a unifying theoretical model that illustrates how economic and psychological motivations trigger both rebound and moral licensing effects, as well as a review of micro-econometric and experimental evidence, we conclude that consideration of moral licensing is warranted for judging the efficacy of policies targeted at energy consumption and the rebound effect.
15 citations
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TL;DR: In the absence of data on energy efficiency or on the energy services (such as heating or lighting) provided by the energy that is used to produce them, rebound effects are often estimated as the negative of own-price elasticities obtained from standard energy demand equations.
Abstract: Rebound effects occur when, due to behavioural responses by consumers to the resulting fall in the implicit price of energy services, energy efficiency improvements result in energy savings that are often less than those suggested by engineering calculations. In the absence of data on energy efficiency or on the energy services (such as heating or lighting) provided by the energy that is used to produce them, rebound effects are often estimated as the negative of own-price elasticities obtained from standard energy demand equations. Using a recently developed model of demand for energy services, which facilitates estimation of a much wider range of rebound effects than has been previously considered, this approach is shown to be inappropriate unless the energy demand equations are specified in a certain way, and even in that case, often only under somewhat heroic assumptions. Illustrative empirical analysis using UK time-series data indicates the extent to which rebound effects can differ from price elasticities.
15 citations
Cites background from "Energy efficiency and consumption —..."
...3 See, for example, the studies identified Sorrell and Dimitropoulos (2008, Section 4), and Greening et al., 2000....
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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