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 present how the rebound phenomenon has evolved from only being considered from a neoclassical economic perspective to include several other disciplines such as psychology, sociology and industrial ecology.
Abstract: This article presents how the rebound phenomenon has evolved from only being considered from a neoclassical economic perspective to include several other disciplines such as psychology, sociology and industrial ecology. The intention is to show how different theoretical perspectives contribute to the scientific discourse about rebound effects. We summarize key findings from the various disciplinary strains of research and highlight new research questions and needs that arise. We discuss strengths and limitations of the expansion towards multi-disciplinary rebound research and suggest that a further expansion towards transdisciplinary research could be valuable. We identify the ‘micro-macro discrepancy’ and the ‘cause-effect relativity’ as two general challenges that have to be taken into account when rebound research becomes increasingly multi- and transdisciplinary. In the final section of the article, we present lessons learned from multi-disciplinary rebound research for policies and measures that aim to mitigate rebound effects. The main finding of this article is that if policy makers aim to make climate and energy policies as ‘rebound-proof’ as possible, findings not only from energy economics but from multi-disciplinary rebound research have to be taken into account.
13 citations
TL;DR: In this article, the authors assess the extent to which subsidies for home energy efficiency improvements in Canada have been paid to households that would have undertaken the improvements anyway -the so-called free rider rate.
Abstract: We assess the extent to which subsidies for home energy efficiency improvements in Canada have been paid to households that would have undertaken the improvements anyway - the so-called free rider rate. We focus on forced-air natural gas furnaces, replaced between April 1, 2007 and March 31, 2011, under both federal and provincial subsidy programs as well as the 2009 federal Home Renovation Tax Credit. Our results indicate that around 50 percent of expenditures under the Canadian subsidy and tax credit programs represented free riding. In the long run, our estimates suggest that over 80 percent of grant recipients would have chosen an identical furnace at the time of replacement. We estimate that the cost effectiveness of the programs in terms of greenhouse gas reduced was between $70 and $110/t CO2, depending on the assumptions made. Further, we find that a substantial majority of the grants were received by middle-and high-income households, such that the grant had a regressive effect on the distribution of income. We conclude that such grants are not an optimal way to improve residential energy efficiency.
13 citations
01 Jan 2012
TL;DR: Maura Allaire et al. as mentioned in this paper presented a project with the Pew Charitable Trusts through Resources for the Future (RTF) on the future of jobs in the United States.
Abstract: Maura Allaire is a Ph.D. student at the University of North Carolina at Chapel Hill and Stephen Brown is a Nonresident Fellow at Resources for the Future and Professor of Economics at the University of Nevada, Las Vegas. Most of the work on the project was conducted while Ms. Allaire was a research assistant at Resources for the Future. Funding for this project was provided by the Pew Charitable Trusts through Resources for the Future. The views expressed are those of the authors and do not necessarily represent those of the University of North Carolina, Resources for the Future, the University of Nevada, Las Vegas, or the Pew Charitable Trusts.
13 citations
Additional excerpts
...We find the subsidy reduced U.S. CO2 38 See http://www1.eere.energy.gov/wip/project_map/....
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...20 See Energy Modeling Forum (2011) and McKibbin et al. (2010)....
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...23 See EIA (2010) for an estimate of U.S. energy-related CO2 emissions from 2005-2009....
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...For each subsidy, we calculate the differences between the baseline case with the subsidy in place and the case with the 28 See EMF (2011) and McKibbin et al. (2010)....
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...See http://www1.eere.energy.gov/wip/eecbg.html....
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TL;DR: An optimal control framework of dynamic pricing and eco-efficiency investment is proposed, for which eco- efficiency reduces the unit production cost and boosts the demand of environmentally concerned consumers and pave the way to sounder sustainability strategies.
13 citations
Dissertation•
23 Jun 2015
TL;DR: In this article, the authors constatons that the systemes electriques sont a l’aube d'evolutions majeures qui partagent une double caracteristique.
Abstract: L’architecture physique des reseaux electriques et les structures organisationnelles des industries electriques survenues a la suite des reformes ont principalement ete concues en fonction des caracteristiques relatives aux infrastructures de transport et aux parcs de production. Or, les nouveaux enjeux de transition energetique, associes aux progres realises dans les equipements de communication et d’automatisation, plaident pour une plus grande participation des activites decentralisees de production et des consommateurs finals. Nous constatons que les systemes electriques sont a l’aube d’evolutions majeures qui partagent une double caracteristique. La premiere et que ces evolutions necessiteront des apports en capitaux considerables pour adapter et moderniser les reseaux de distribution. La seconde est que l’activation de l’aval de la chaine electrique libere des gains d’efficacite economique actuellement inexploites, mais est egalement porteuse de contraintes nouvelles.
Partant de ce constat, l’objectif de cette these est double. Il s’agit dans un premier temps de proposer une analyse theorique des instruments de regulation qui encadrent et orientent les depenses des operateurs reseau. Nous cherchons en nous appuyant sur la litterature a caracteriser les outils de regulation les mieux adaptes a l’investissement en smart technologies. Puisqu’il est necessaire de confronter l’analyse theorique aux faits, nous entreprenons de recenser les gains cles d’efficacite economique escomptes de la generalisation des smart grids. Nous illustrons chacun de ces gains par une etude empirique qui nous permet de comparer les resultats issus de notre analyse theorique aux schemas de regulation existants et de formuler un certain nombre de recommandations.
Le second objectif de la these se concentre sur les impacts de la diffusion de programmes de la gestion de la demande. Le raisonnement adopte s’articule autour de deux constats. D’importants benefices sont attendus des reductions substantielles des pointes de demande, reductions qui se traduisent par de moindres opportunites de profit pour les producteurs. Il s’agira de realiser une estimation des gains et pertes que l’on peut attendre de la gestion de la demande. Pour cela, nous developpons et utilisons un modele d’optimisation dans lequel nous integrons plusieurs pays interconnectes dotes de parcs de production differencies.
La these montre que les cadres de regulation dominants actuellement sont limites dans leur portee incitative pour favoriser un investissement efficace dans la technologie, ce qui est susceptible de retarder son introduction. La quantification des impacts de la gestion de la demande montre quant a elle que des efficacites significatives peuvent etre activees via la generalisation de ces mesures. Toutefois, elles posent des problemes nouveaux dans la remuneration de l’existant, l’adequation future des capacites, et souligne l’antagonisme potentiel entre perte de revenus pour les unites de pointe les plus reactives et developpement des energies bas carbone.
De toute evidence, les interrogations soulevees par le developpement des smart grids necessitent que soit mene un debat politique eclaire puisque l’industrie electrique est indispensable a nos societes. Parmi le nombre considerable d’elements a aborder, arriveront en bonne place les questions relatives au financement des projets d’investissement et a l’inclusion des nouvelles sources de flexibilite induites par l’adoption de la technologie dans les marches electriques liberalises.
13 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