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.
Citations
More filters
TL;DR: In this article, consumer preferences for fuel economy evolve over time, and the estimation results confirm the existence of such a change and simulate consumer behavior, enabling consumers in 2010 to choose automobiles from 2016, and vice versa.
Abstract: Which comes first in reducing the Carbon Dioxide (CO2 ) emissions from the transportation sector: consumer preference or technological advancement? Using a series of discrete-choice demand models, we estimate the demand for automobiles in Japan Our model explicitly allows consumer preferences for fuel economy to evolve over time, and the estimation results confirm the existence of such a change We then simulate consumer behavior , enabling consumers in 2010 to choose automobiles from 2016, and vice versa The results imply that both consumer preferences and technological advancement are important—without technological advancement and increases in consumers’ appreciation for fuel-efficient cars, CO 2 emissions cannot be reduced
6 citations
TL;DR: In this paper , the role of energy efficiency, industrial production and investment in energy on carbon emissions for China employing data from 1990 to 2020 was analyzed using updated time series econometric methods such as Narayan and Pop unit root test, Bayer-Hanck cointegration method, fully modified, dynamic and canonical co-integration analysis.
6 citations
TL;DR: In this paper, participants were matched in groups of 10 to play in a collective-risk game framed as a community energy purchase scheme, where each day participants received feedback about decisions of their group partners, and in some groups the feedback was manipulated as high or low (fair condition) use.
Abstract: To solve problems like climate change, every little push counts. Community energy schemes are a popular policy targeted to reduce a country’s carbon emissions but the effect they have on energy use depends on whether people can work together as a community. We often find ourselves caught in a dilemma: if others are not doing their bit, why should I? In our experiment participants (N = 118) were matched in groups of 10 to play in a collective-risk game framed as a community energy purchase scheme. They made only one decision about energy use for their virtual household a day, whilst a full round of the game lasted one week in real time. All decisions were entered via personal phone or a home computer. If in the end of the week the group exceeded a pre-paid threshold of energy use, all group members would share a fine. Each day participants received feedback about decisions of their group partners, and in some groups the feedback was manipulated as high (unfair condition) or low (fair condition) use. High average group use created individual risk for participants to be penalized in the end of the week, even if they did not use much themselves. We found that under the risk of having to pay a fine, participants stayed significantly below the fair-share threshold regardless of unfair behaviour of others. On the contrary, they significantly decreased their consumption towards the end of the game. Seeing that others are doing their bit – using a fair-share – encouraged people to take advantage of the situation: those who played against fair confederates did not follow the normative behaviour but conversely, increased their consumption over the course of the game. These opportunistic strategies were demonstrated by impulsive participants who were also low in punishment sensitivity. We discuss the findings in the light of policy research as well as literature on cooperation and prosocial behaviour.
6 citations
Cites background from "Energy efficiency and consumption —..."
...If one of the households in the community, despite an agreement, uses unreasonably high amounts of energy and if there is no opportunities to punish the free-rider (Fehr and Gachter, 2002), will the rest of the community compensate for them by using less? Or will they retaliate and use more themselves, causing a rebound effect (Greening et al., 2000), thus eliminating the benefits of the deal secured by the community? Furthermore, if some households use a fair-share amount, will others follow an establishing norm of cooperation in the group? The present study used a collective-risk game, a type of experimental social dilemma, to model a communal energy purchase scenario “in the wild....
[...]
Posted Content•
Abstract: Improvements in energy efficiency are increasingly seen as a key strategy to reduce energy consumption in the domestic sector. Yet, concerns are mounting that households rebound, meaning that they adapt to efficiency gains by increasing their demand, as efficiency improvements reduce relative costs of energy. This study investigates the elasticity of household energy consumption for space heating with respect to changes in household heating efficiency. We account for the simultaneity of energy efficiency and energy consumption by applying an instrumental variable approach. Using data from the 2009 Residential Energy Consumption Survey, we document that while there is substantial takeback among US households, rebound rates are far too small to dominate energy savings from these improvements. Estimates of the direct rebound effect in domestic heating are about 30%. Moreover, we find no evidence for a substantial indirect rebound at the household level. However, we document that the degree of takeback increases in energy prices, suggesting that price-based and efficiency-based policy instruments may counteract each other.
6 citations
Cites background from "Energy efficiency and consumption —..."
...This phenomenon, known as the ‘rebound’ or ‘take-back’ effect (Khazzoom, 1980; Brookes, 1990; Berkhout et al., 2000; Greening et al., 2000), has direct implications for policy making as it determines whether policies aiming to decrease energy use by targeting energy efficiency are likely to meet…...
[...]
...…al., 2009; Stern, 2014), economists have long noted that technological measures of this type are tantamount to decreasing the relative costs of energy and thus are likely to stimulate households to increase their demand (Khazzoom, 1980; Brookes, 1990; Berkhout et al., 2000; Greening et al., 2000)....
[...]
...This phenomenon, known as the ‘rebound’ or ‘take-back’ effect (Khazzoom, 1980; Brookes, 1990; Berkhout et al., 2000; Greening et al., 2000), has direct implications for policy making as...
[...]
..., 2009; Stern, 2014), economists have long noted that technological measures of this type are tantamount to decreasing the relative costs of energy and thus are likely to stimulate households to increase their demand (Khazzoom, 1980; Brookes, 1990; Berkhout et al., 2000; Greening et al., 2000)....
[...]
...…literature, the direct rebound effect is defined as the elasticity of energy service demand with respect to energy intensity (Berkhout et al., 2000; Greening et al., 2000; Sorrell and Dimitropoulos, 2008; Galvin, 2015): ηε(S) = ∂S ∂ε × ε S (1) where S is energy service demand and ε is energy…...
[...]
References
More filters
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