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Journal ArticleDOI

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
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01 Jan 2014
TL;DR: In this paper, the authors evaluate the effects of the Energy Policy Act of 2005 (EPACT) on the adoption of alternative fuel vehicles (AFVs) and demonstrate that the revenue decrease can easily be made up through small policy fee changes in either flat fixed or through incremental increases in use fees.
Abstract: Transportation policy is playing an increasingly important role in the transition towards more fuel-efficient vehicles and alternative fuel vehicles (AFVs). Whether the policy seeks to promote adoption through mandatory requirements or through monetary incentives, or to address issues related to adoption of AFVs, it is clear that such policies can have largeranging impacts on the future of the US transportation system. The work I conduct in my dissertation seeks to understand these policies, in the past, present, and future. I evaluate the effects of the Energy Policy Act of 2005 (EPACT) on the adoption of HEVs. As part of EPACT, a tax credit incentives program was implemented for consumers purchasing HEVs. Using a unique fixed effects regression approach with lagged instrumental variables, I am able to estimate the effects of the incentives. I find the most significant responses occur when incentives exceed $1,000 in tax credit. Depending on the vehicle model the presence of EPACT yielded increases in sales of 5% to 15%. This increase is relatively smaller compared to many existing studies, which my work indicates is likely the result of over-attribution of sales to policy. I go on to examine the effects of the adoption of electric vehicles on funding for transportation infrastructure. A significant portion of revenue for transportation infrastructure comes from taxes on gasoline, these funds will likely be diminished to some extent as electric vehicles are adopted as they consume little to no gasoline as fuel. Using several existing electric vehicle models, I find that at the per-vehicle level, revenue generation can be upwards of 50% lower in certain states depending on how fees are charged. The total annual revenue generation at the federal level could decrease by as much as $200 million by 2025, though this is quite a small portion of total revenues for transportation infrastructure. I demonstrate that the revenue decrease can easily be made up through small policy fee changes in either flat fixed or through incremental increases in use fees, though implementation of such policies can be difficult politically. I also focus on the recent implementation of alternative fuel vehicle incentives in the

4 citations

Journal ArticleDOI
TL;DR: In this article, the authors analyzed the effectiveness of CAFE standards in South Korea, by developing a two-stage model to describe the automobile purchase and usage behavior of consumers sequentially.
Abstract: To address the global concerns about climate change, South Korea adopted the Corporate Average Fuel Economy (CAFE) standards to reduce energy consumption and CO 2 emissions in the transport sector. However, the effectiveness of CAFE standards in South Korea remains controversial because no significant reductions in energy consumption and CO 2 emissions have been reported since these standards were introduced. This study aims to analyze the effectiveness of CAFE standards in South Korea, by developing a two-stage model to describe the automobile purchase and usage behavior of consumers sequentially. This study also simulates the effectiveness of CAFE standards in South Korea under short- and long-term scenarios. According to the results, when automobile manufacturers reduce the relative prices of economy and subcompact automobiles by 20% in the short-term, the total fuel consumption and CO 2 emissions will decrease by 0.381% and 0.408%, respectively, compared with the conditions in 2012. In the long-term, when manufacturers improve the fuel efficiency of diesel and gasoline automobiles by 20%, the corresponding reductions will be by approximately 2.83% for each. In addition, this study verifies that the rebound effect is a crucial aspect when evaluating energy demand management policy. Failing to consider such an effect could lead to overestimating the amount of energy conservation. Such ex-ante analysis provides significant implications for policymakers to enhance policy effectiveness in this domain.

4 citations

01 Jan 2011
TL;DR: In this paper, the authors analyzed the process that has shaped residential retrofit policies in New Zealand and Chile; the first, a developed country with a long history of residential energy efficiency; the second, a developing country that is in the first stages of the retrofit policy process.
Abstract: Society’s unsustainable patterns of energy consumption mean that residential energy efficiency plays a significant role in building a more sustainable society. This research analyses the process that has shaped residential retrofit policies in New Zealand and Chile; the first, a developed country with a long history of residential energy efficiency; the second, a developing country that is in the first stages of the retrofit policy process. Different theoretical approaches to residential energy efficiency were used, specifically, approaches within economic and behavioural economics theory, such as barriers theory, the rebound effect theory and co-benefits theory. A particular emphasis was given to co-benefits theory. The research found that in both Chile and New Zealand the retrofit policy process depends on critical contextual factors (e.g. global oil shocks, global financial crisis, energy security issues, electricity sector reforms and climate change mitigation policy) which trigger a sense of political urgency to address these factors. Local entities and the academic world have also contributed to shape retrofit policies. The multiple co-benefits of residential retrofit lead to a more resilient policy when governments and political will change. In the future, the cobenefits of health, fuel-poverty, fuel affordability, energy security and thermal comfort are likely to provide resilience to retrofit policies in Chile and New Zealand.

3 citations


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

  • ...Greening, Greene, and Difiglio (2000) analysed 75 rebound effect studies in the literature and concluded that the rebound was 10-30% for space heating, 0-50% for space cooling, 10-40% for water heating, 5-12% for residential buildings and 0% for appliances....

    [...]

Journal ArticleDOI
Shannon McDowell1
TL;DR: In this article , a supervised machine-learning model (i.e., an application of random forest regression) is developed to quantify consumption rebound effects, which allows to estimate any income-related rebound at household level considering specific household properties and the entire profile of consumption.

3 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

Journal ArticleDOI
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

Journal ArticleDOI
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

Journal ArticleDOI
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