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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Journal Article•
TL;DR: Korsunova et al. as mentioned in this paper investigated how energy providers in Finland perceive communication of energy conservation practices to households and found that much of the energy conservation communication is aimed at improved customer relationship building, while the effectiveness of energy communication is undermined by a deadlock of factors that reinforce each other.
Abstract: Korsunova, Angelina Encouraging energy conservation with ‘no hard feelings’: a two-part analysis of communication between energy companies and Finnish households. Jyväskylä: University of Jyväskylä, 2010, 213 p. (Jyväskylä Studies in Business and Economics ISSN 1457-1986; 95) ISBN 978-951-39-4136-9 (PDF), 978-951-39-4080-5 (nid.) Diss. Even though traditionally efficiency has been viewed as the ultimate solution to energy consumption problems, due to rebound effects it fails to achieve absolute reductions in consumption levels. This study focuses on encouragement of energy conservation in households, which encompasses both efficiency improvements, but also behavioral changes motivated by sufficiency ethics. Household energy consumption belongs to the category of “ordinary” consumption, which is invisible in everyday life, but is estimated to be among the largest when compared to other final energy uses in the EU. In Finland many energy providers have been communicating energy saving advice to households already for a few years. The purpose of the study is to understand how energy providers in Finland perceive communication of energy conservation practices to households. Whether it is a legal matter, a responsibility, or an opportunity – describing this perception, the reasoning behind it and whether it has been successful has important implications for promotion of sustainable consumption. Inspired by the pragmatist traditions, a dual approach (consumer + corporate) with mixed research methods was adopted to accomplish the aim. First, consumer attitudes towards energy conservation were explored in a survey. Second, representatives of energy companies were interviewed in order to explore corporate perceptions on energy conservation promotion. Analysis of the combined data showed that much of the energy conservation communication is aimed at improved customer relationship building, while the effectiveness of energy communication is undermined by a deadlock of factors that reinforce each other, e.g. consumer lack of energy market understanding, resulting lack of interest and lack of timely feedback to households. Thus, in order to make household consumption more sustainable all the barriers should be addressed, while piecemeal efforts of mere advice provision reduce corporate efforts to PR. Despite energy providers’ aspirations to become the hub for energy solutions they are not ready to handle it alone: involvement of other actors, and structures for increased cooperation between energy market actors are needed.
7 citations
18 May 2015
TL;DR: In this article, the authors analyze the role that environmental technology plays in the solution of environmental problems in cities, and discuss models and conditions that can facilitate the procurement of environmental resources.
Abstract: The aim of this thesis is to analyze the role that environmental technology plays in the solution of environmental problems in cities, and discuss models and conditions that can facilitate the proc ...
7 citations
Cites background from "Energy efficiency and consumption —..."
...There are numerous relevant discussions about the rebound effect of technology (see e.g. Druckman et al., 2011; Greening et al., 2000), and the actual effect of e.g. some energy efficiency measures on emissions targets....
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TL;DR: Policy interactions between two innovative climate and energy policy instruments, namely White Certificates (WhC) and Joint Implementation (JI) that target at energy efficiency improvement and reductions of Greenhouse Gas emissions are analyzed.
Abstract: In this paper we analyze policy interactions between two innovative climate and energy policy instruments, namely White Certificates (WhC) and Joint Implementation (JI) that target at energy efficiency improvement and reductions of Greenhouse Gas (GHG) emissions. We have selected The Netherlands and Bulgaria as a case study given that the former has a cumulated experience in energy efficiency policies and the latter for a growing potential in JI projects as a host country. Based on a method of analyzing policy interactions, we demonstrate how a possible design of such a scheme can take place and how it should function. A couple of parameters that deserve attention are a baseline definition and a conversion rate for credits. Our basic finding is that an integrated scheme is complementary and can assist substantially in achieving Dutch national United Nations Framework Convention on Climate Change (UNFCCC) Kyoto Protocol targets. Dutch electricity and gas suppliers (parties that receive energy efficiency obligations) can implement energy efficiency projects domestically and in other countries, hence reducing total abatement costs. Furthermore, such a scheme can stimulate further energy efficiency actions from other stakeholders participating in energy markets. Based on an ex-ante assessment, a carefully designed hybrid WhC and JI scheme appears to be effective in terms of targets, efficient, generating positive impacts on markets and society, while uncertain in stimulating innovation.
7 citations
Cites background from "Energy efficiency and consumption —..."
...Finally, as far as the rebound effect is concerned (basically a leakage factor), some studies (Binswanger 2001; Greening et al. 2000 ) expect an average of 20‐25% reduction of the effectiveness of the energy efficiency measures....
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TL;DR: In this paper, the authors used the index decomposition analysis (IDA) to estimate the economy-wide direct rebound effect, where improved fuel mileage causes additional travel, and found that the total gasoline saved by shifting from vintage ordinary passenger cars to both new kei passenger cars and new hybrid cars during fiscal 2006-2007 amounted to 395 ML, while about half of the gasoline savings from car replacement were lost.
Abstract: This paper analyzes gasoline consumption in Japan for the period 2000–2007 using the index decomposition analysis (IDA). The changes in gasoline consumption in Japan were attributed to five factors: (1) change in the annual average driving distance of new and vintage cars, (2) change in the market share of new passenger cars, (3) change in the total number of new passenger cars, (4) change in the fuel economy of new passenger cars, and (5) change in the stock of vintage cars. We used the IDA results to estimate the economy-wide direct rebound effect, where improved fuel mileage causes additional travel. We found that the total gasoline saved by shifting from vintage ordinary passenger cars to both new kei passenger cars and new hybrid cars during fiscal 2006–2007 amounted to 395 ML, while about half of the gasoline savings from car replacement were lost by the direct rebound effects. The analysis shows that the direct rebound effect can be crucial in the effort of reducing overall gasoline consumption as well as household CO2 emissions from passenger cars. JEL Classification: Q41, Q43.
7 citations
Posted Content•
TL;DR: In this paper, the discussion about emission reductions from a development perspective is recast as a burden sharing problem and the authors conclude that climate negotiations should depart from the current framework and shift to a debate focused on choosing a development path that would address domestic issues, while aligning pure climate policies with development policies.
Abstract: Distribution issues have been critical in international negotiations on climate change. These have been framed as a ‘burden sharing' problem since the UN Framework Convention on Climate Change. Three key difficulties are associated with this approach under a cap-and-trade system, namely the lack of consensus over what is equitable, uncertainty over estimates of policy costs, and lack of political realism and economic effectiveness of large-scale international transfers. These difficulties point to the risk of failure of post-2020 negotiations if these are based on the same premises of ‘sharing the emission reduction pie' within a cap-and-trade regime. History has shown that different development paths can lead to similar economic performances with contrasted emission intensities. This paper proposes some insights into what could constitute a way forward, by recasting the discussion about emission reductions from a development perspective. It concludes that climate negotiations should depart from the current framework and shift to a debate focused on choosing a development path that would address domestic issues, while aligning pure climate policies with development policies. © 2015, Springer Science+Business Media Dordrecht.
7 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