Energy efficiency and consumption — the rebound effect — a survey

doi:10.1016/S0301-4215(00)00021-5

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Energy efficiency and consumption — the rebound effect — a survey

Journal Article•DOI•

Energy efficiency and consumption — the rebound effect — a survey

Lorna A. Greening¹, David L. Greene², Carmen Difiglio³•Institutions (3)

International Resources Group¹, Oak Ridge National Laboratory², International Energy Agency³

01 Jun 2000-Energy Policy (Elsevier)-Vol. 28, Iss: 6, pp 389-401

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.

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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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Journal Article•DOI•

Empirical evidence of direct rebound effect in Indian two-wheeler sector

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Balagopal G. Menon¹•Institutions (1)

University of Salford¹

13 Mar 2017-Energy Efficiency

TL;DR: In this paper, the authors aimed at seeking for the existence of direct rebound effect and its stability over time in two-wheeler transport sector in India using aggregate time series data.

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Abstract: The transport sector is the main contributor to the greenhouse gas emissions in India. The rise in atmospheric pollution due to greenhouse gases has triggered the energy efficiency improvement policy in the Indian automotive sector. The extent of success of the energy efficiency improvement policy in any sector is substantially influenced by the phenomenon of “rebound effect”. The present study is aimed at seeking for the existence of direct rebound effect and its stability over time in two-wheeler transport sector in India using aggregate time series data. The study found out the presence of this effect in the two-wheeler sector, and it experiences a partial rebound of 25.5%. The direct rebound effect was found to be declining over time which is in line with the Greene (Energy Policy, 41, 14–28, 2012) and Small and Van Dender ( Energy Journal, 28(1), 25–51, 2007) models. The rebound effect existence in the two-wheeler sector should be considered during the development and implementation of energy efficiency related policies in the Indian transport sector in order to reap the maximum benefits out of these policies in the future.

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7 citations

Journal Article•DOI•

Vehicle choice and utilization: Improving estimation with partially observed choices and hybrid pairs

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Alicia Lloro¹, David Brownstone²•Institutions (2)

Federal Deposit Insurance Corporation¹, University of California, Irvine²

01 Sep 2018-Journal of choice modelling

TL;DR: This paper exploits differences in fuel efficiency between hybrid vehicles and their gasoline counterparts to investigate two key questions relating to fuel economy standards: whether consumers properly value fuel economy (the energy paradox) and whether improved fuel efficiency increases travel (the rebound effect).

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Abstract: This paper exploits differences in fuel efficiency between hybrid vehicles and their gasoline counterparts to investigate two key questions relating to fuel economy standards: whether consumers properly value fuel economy (the energy paradox) and whether improved fuel efficiency increases travel (the rebound effect). Several vehicles, such as the Honda Civic, are available in both hybrid and gasoline versions. Such vehicles share many of the same attributes, with the main difference being fuel efficiency, and provide a unique setting to examine these issues. We emphasize methodological and data issues that typically have not been a focus in prior studies, such as partial observability, endogeneity, and measurement error. Estimates of the rebound effect and consumer valuation of fuel economy remain imprecise despite the use of the detailed household level data and sound methodology to handle limitations with these data. The inability to precisely estimate these important policy questions suggests it is useful to obtain reliable, detailed data on household vehicles, paired with rich household- and person-level survey data.

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7 citations

The Climate for Change: the Conditions for Effective Climate Change Policies: a Case Study on Residential Home Insulation Policies in New Zealand and Germany

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Oliver Lah

01 Jan 2009

TL;DR: In this paper, a case study on insulation policies for the residential building sector is presented to identify the conditions for a climate for change and the structures that enable change and enhance implementation.

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Abstract: Changes in the global climate and the insecure future of the world's energy supply place unprecedented risks and uncertainties before mankind. Massive changes need to occur, driven by effective policies. But what is the ideal climate for change? With a case study on insulation policies for the residential building sector this thesis aims to identify the conditions for a climate for change. This thesis explores the factors that help or hinder change and the structures that enable change and enhance implementation. Within a particular policy area, i.e. residential home insulation, this thesis examines the impacts on policy development and implementation of environmental and resources pressures, the strength of centre-left and green parties and the levels of corporatism in New Zealand and Germany. The case study of insulation policies in New Zealand and Germany has been chosen because of similar policy aspirations and rhetoric in the two countries but differing policy achievements and outcomes. The thesis compares three decades of policy making and implementation in Germany and New Zealand and finds that, if environmental and resource pressures are high, corporatist structures may impact positively on climate change policy development and implementation. It also finds that in pluralist countries centre-left and green party strength may be more important for the success of climate change policies than in corporatist countries.

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7 citations

Dissertation•

Applications of Systems Thinking within the Sustainability Domain : Product Design, Product Systems and Stakeholder Perspectives

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Rafael Laurenti

01 Jan 2013

TL;DR: In this article, the authors investigate if unintended consequences and unintended consequences arise as unanticipated side effects of our own modern developments, and they conclude that many of the sustainability challenges our society currently face have arisen as unintended consequences of modern developments.

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Abstract: Many of the sustainability challenges our society currently face have arisen as unanticipated side effects of our own modern developments. This thesis investigates if unintended consequences and pe ...

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7 citations

Dissertation•

Visions of domestic electricity use in a changing sociotechnical system

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Sam Hubble

01 Jan 2015

TL;DR: In this paper, focus groups and interviews with public and expert participants were used to investigate how and why electricity is used in the home, and to unpick the assumptions within visions of possible future change to the electricity system.

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Abstract: The domestic sector accounts for approximately one third of the UK’s energy demand. As such there is scope for significant change in domestic electricity demand to facilitate the transition towards a more sustainable electricity system. This thesis uses qualitative focus groups and interviews with public and expert participants to investigate how and why electricity is used in the home, and to unpick the assumptions within visions of possible future change to the electricity system. Public and expert interviewee suggestions for changes to increase the flexibility of domestic demand (a key aspect of enabling increased penetration of renewable generation technologies) were rooted in ecological modernisation, where technological solutions such as home automation were advocated as the most appropriate mechanisms for achieving change. Additionally, experts posited that information provision about the need for change to the wider electricity system, and thus ways in which people use electricity in the home, would ‘educate’ the public and result in acceptance and change. Solutions adopting assumptions of economic-rationality were also identified in public and expert discourse, where financial mechanisms were suggested to have the ability to influence behaviour. However, contradictory evidence suggested that financial mechanisms will not provide sufficient incentives for change, as people instead are influenced more directly by the desire to fulfil immediate needs.

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7 citations

Cites background from "Energy efficiency and consumption —..."

...Greening et al. (2000) state that the size of rebound effects can be insignificant – depending on the definition of rebound being used – or can at the other extreme result in an overall increase in consumption. Discussed simply, homeowners may, via a range of possible mechanisms, benefit financially from improved energy efficiency measures and then ‘rebound’ by using the rewards of these benefits to instigate behaviour that increases electricity use through other means or increased intensity or repetition of the original behaviour. Sorrell and Dimitripoulos (2008) make the economic case for rebound effects, presenting the idea that replacing appliances with more energy-efficient models could be expected to reduce overall electricity consumption....
[...]
...Greening et al. (2000) state that the size of rebound effects can be insignificant – depending on the definition of rebound being used – or can at the other extreme result in an overall increase in consumption. Discussed simply, homeowners may, via a range of possible mechanisms, benefit financially from improved energy efficiency measures and then ‘rebound’ by using the rewards of these benefits to instigate behaviour that increases electricity use through other means or increased intensity or repetition of the original behaviour. Sorrell and Dimitripoulos (2008) make the economic case for rebound effects, presenting the idea that replacing appliances with more energy-efficient models could be expected to reduce overall electricity consumption. However, by drawing on Greening et al.’s (2000) direct and indirect rebound effects they explain how responses counteract this reduction. Direct effects may occur for example when efficient appliances effectively become cheaper to run, which could lead to the appliance being used more often, therefore reducing the energy savings achieved through efficiency improvements. Indirect effects may result from financial savings accrued through efficiency improvements being used to invest in other consumption-intensive activities or products. This can be demonstrated, for example, by cost savings gained through insulation or heating system improvements, which may then be used to buy newer, more energy-intensive appliances for the home. However, others suggest that this rebound effect is oversimplified, particularly if the investigation of electricity consumption stems from an industrial ecological approach. Hertwich (2005) suggests that additional mechanisms have an impact, and that a more accurate and neutral description – that avoids the negative attention sometimes afforded to what can be positive...
[...]
...Greening et al. (2000) state that the size of rebound effects can be insignificant – depending on the definition of rebound being used – or can at the other extreme result in an overall increase in consumption. Discussed simply, homeowners may, via a range of possible mechanisms, benefit financially from improved energy efficiency measures and then ‘rebound’ by using the rewards of these benefits to instigate behaviour that increases electricity use through other means or increased intensity or repetition of the original behaviour. Sorrell and Dimitripoulos (2008) make the economic case for rebound effects, presenting the idea that replacing appliances with more energy-efficient models could be expected to reduce overall electricity consumption. However, by drawing on Greening et al.’s (2000) direct and indirect rebound effects they explain how responses counteract this reduction....
[...]
...Greening et al. (2000) state that the size of rebound effects can be insignificant – depending on the definition of rebound being used – or can at the other extreme result in an overall increase in consumption....
[...]

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References

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Book•

Economics and consumer behavior

[...]

Angus Deaton, John Muellbauer

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.

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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.

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3,952 citations

Journal Article•DOI•

Technology, Prices, and the Derived Demand for Energy

[...]

Ernst R. Berndt, David O. Wood

01 Aug 1975-The Review of Economics and Statistics

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.

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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.

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1,422 citations

Journal Article•DOI•

Individual Discount Rates and the Purchase and Utilization of Energy-Using Durables

[...]

Jerry A. Hausman

01 Jan 1979-The Bell Journal of Economics

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.

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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.

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1,361 citations

Journal Article•DOI•

Economic Implications of Mandated Efficiency in Standards for Household Appliances

[...]

J. Daniel Khazzoom

01 Jan 1980-The Energy Journal

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.

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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)

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802 citations

Posted Content•

Qualitative Choice Analysis: Theory, Econometrics, and an Application to Automobile Demand

[...]

Kenneth Train

01 Jan 1985-Research Papers in Economics

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.

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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.

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726 citations