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 discuss the key factors that influence firm-level decision-making within energy efficiency policy regimes, focusing on elements of the rebound effect and the elasticity of travel activity with respect to fuel efficiency.
Abstract: New technologies and policies have improved the efficiency of heavy-duty vehicles operating in the United States. These improvements reduce transportation costs ($/mile) for firms and raise questions about firm-level responses to these lower costs. Of particular concern are potential rebound effects on energy consumption that would partially offset the benefits these new technologies and policies aim to achieve. Although recent quantitative research has suggested that rebound effects in the U.S. trucking sector are negligible, very little has been done to “ground-truth” these results through discussions with transportation firms in the trucking sector. Based on interview results with eight trucking firms, this paper discusses the key factors that influence firm-level decision making within energy efficiency policy regimes. In particular, we focus on elements of the rebound effect and the elasticity of travel activity with respect to fuel efficiency. We find that both direct and indirect rebound effects may be small for reasons discussed in the paper. These results help validate recent empirical studies that point to an inelastic relationship between transportation costs and vehicle miles traveled and help expand our understanding of rebound effects in the trucking sector, thereby providing important information for impact analysis and future policy development.
4 citations
01 Jan 2013
4 citations
Cites background from "Energy efficiency and consumption —..."
...While Greening et al. (2000) found that these rebound effects can be as large as 50% of the energy saved (in the case of space cooling), the effects are generally less than 30% (found for space heating, lighting, and transportation)....
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01 Dec 2015
TL;DR: It is pointed out that promoting energy efficiency without curbing the overall energy consumption may not necessarily reduce carbon footprints, so the green ICT research, industrial and standardization bodies' emphasis should be shifting from energy efficiency to energy self-sufficiency for a 'technical fix'.
Abstract: This paper argues that improving energy efficiency which the ICT research, industrial and standardization bodies are currently emphasizing, and implicitly assuming that more energy efficient technologies can contribute more to the reduction of energy consumptions, and as a consequence of carbon emissions impact on the environment, is only part of the solution. It points out that promoting energy efficiency without curbing the overall energy consumption may not necessarily reduce carbon footprints. Advancing the energy efficiency might only lower the unit price of using energy and associated ICT services, hence making their usage more affordable and leading to greater uses. This leads to a 'rebound' effect, which produces more carbon emissions. Therefore the green ICT research, industrial and standardization bodies' emphasis should be shifting from energy efficiency to energy self-sufficiency for a 'technical fix', rather than only seeking economical governance solutions such as ecological policies, regulations and the introduction of carbon footprint taxes additions.
4 citations
Cites background from "Energy efficiency and consumption —..."
...This has been called the ‘rebound effect’ in [24-27]....
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...A comprehensive survey on rebound effect can be found in [27]....
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25 May 2010
TL;DR: In this paper, the authors estimate the rebound effects of innovative traffic management and public transport systems and make a wide ranging set of recommendations on how we can meet our carbon targets without falling short because of rebound effects.
Abstract: Purpose of this paper is to estimate the rebound effects of innovative traffic management and public transport systems. This paper reviews what rebound effects are and how they apply to transport for technologies such as fuel efficient vehicles, telecommuting, e-commerce and fuel prices. We will identify innovations and best practice for sustainable transport strategies around the world, and make a wide ranging set of recommendations on how we can meet our carbon targets without falling short because of rebound effects.
4 citations
TL;DR: In this article, the authors examine the additionality of energy savings in energy efficiency subsidy programs and propose an incentive compatible solution within the subsidy program that can mitigate the non-additionality problem and improve the effectiveness of the scheme.
Abstract: This paper examines the ‘additionality’ of energy savings in energy efficiency subsidy programs. ‘Additionality’ refers to the energy savings caused by actions beyond what would have occurred in the absence of the policy program. We characterise energy consumers’ strategic response to the subsidies in a formal adverse selection model and show how the subsidy program may fail to satisfy the additionality criterion. This occurs when energy consumers, who partake in the program, have different preferences for energy efficiency technologies that are unobservable. To resolve this, we propose an incentive compatible solution within the subsidy program that can mitigate the non-additionality problem and improve the effectiveness of the scheme.
4 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