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, an alternative approach to a graphical analysis of the interaction of White Certificates with the EU emission trading scheme was presented, and the effects of introducing WCTS and EU ETS into the market setting were then analyzed accordingly.
3 citations
01 Jan 2012
TL;DR: In this paper, the authors examined the economic impact of using dedicated direct current (DC) circuits to operate lighting in commercial buildings and found that using DC circuits in grid-connected PV-powered LED lighting systems can lower the total unsubsidized capital costs by 4% to 21% and levelized annual costs by 2% to21% compared to AC gridconnected PV LEDs providing the same level of lighting service.
Abstract: By lowering the energy required to provide a service, energy efficiency can help society consume less energy, emit less CO2e and other air pollutants, while maintaining quality of life. In this work, I examine a key benefit of energy efficiency, reducing renewables investment costs, and a side-effect, expanding energy service demand, also known as the rebound effect. First, I assess the economics of an energy efficiency intervention, using dedicated direct current (DC) circuits to operate lighting in commercial buildings. I find that using DC circuits in grid-connected PV-powered LED lighting systems can lower the total unsubsidized capital costs by 4% to 21% and levelized annual costs by 2% to 21% compared to AC grid-connected PV LEDs providing the same level of lighting service. I also explore the barriers and limitations of DC circuits in commercial buildings. Second, I examine the rebound effect from residential energy efficiency investments through a model in which households re-spend energy expenditure savings from an efficiency investment on more of the energy service (direct rebound) or on other goods and services (indirect rebound). Using U.S. household expenditure data and environmentally-extended input-output analysis, I find indirect rebound effects in CO2e emissions of 5-15%, depending on the fuel saved and assuming a 10% direct rebound. Third, I examine the variation in the indirect rebound from electricity efficiency across U.S. states due to differences in electric grid mix, fuel prices, household income, and spending patterns. I find that the CO2e direct and indirect rebound effects vary across states between 6-
3 citations
Cites background from "Energy efficiency and consumption —..."
...more prone to rebound effects than refrigeration, clothes washing, and drying (Greening et al., 2000; Sorrell et al., 2007; Schipper and Grubb, 2000; Davis, 2008; Davis et al., 2012)....
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...There is a larger body of literature on measuring direct rebound effects in terms of energy price elasticities, without accounting for self-selection issues, which range from 4-87% (Klein, 1985; Hseuh and Gerner, 1993; Berkhout et al., 2000; Greening et al. 2000; Dubin and McFadden, 1984; Frondel, 2007)....
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...The indirect rebound effect describes the respending of energy cost savings on other goods(Greening et al., 2000; Berkhout, 2000; Schipper and Grubb, 2000; Binswager, 2001; Chalkely et al., 2001; Druckman et al., 2011), e....
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...The direct rebound effect describes the increase in the demand for energy services due to the lower price of energy services with an efficiency investment (Khazzoom, 1980; Greening et al., 2000; Berkhout, 2000; Sorrell and Dimitropolous, 2008), e....
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...The economy-wide rebound effect can be divided into several components (Greening et al., 2000; Sorrell, 2007), which can be measured for either the residential, commercial, or industrial sectors, often using microeconomic models....
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16 Aug 2013
3 citations
TL;DR: In this paper, a generalized model illuminating the eff ects of an exogenous change in energy efficiency on energy use, external costs, and welfare is developed, and conditions under which the rebound is welfare-improving and how the rebound influences the welfare consequences of energy effiency policies.
Abstract: Economists have long noted that improving energy efficiency could lead to a rebound eff ect, reducing or possibly even eliminating the energy savings from the efficiency improvement Yet there are important nuances in the microeconomic theory of the rebound eff ect that have not been explored This paper develops a generalized model illuminating the eff ects of an exogenous change in energy efficiency on energy use, external costs, and welfare This model overturns conventional wisdom by showing how several identities that are frequently used to estimate the rebound eff ect no longer hold in a generalized setting We clarify the relationship between the direct rebound effect and the indirect rebound, and highlight the importance of complement/substitute relationships between energy services Furthermore, by including external costs in our model, we develop conditions under which the rebound is welfare-improving and show how the rebound influences the welfare consequences of energy efficiency policies
3 citations
Posted Content•
TL;DR: In this paper, the authors quantify the magnitude of the general equilibrium rebound effects from an increase in energy efficiency in the industrial use of energy in Italy, using a large-scale numerical dynamic general equilibrium model calibrated using the Italian Social Accounting Matrix for the year 2010.
Abstract: The International Energy Agency (IEA, 2009) suggests the importance of efficiency improvement to reduce energy use and, within the European Union, one of the targets for member states is to reduce energy consumption by 20% through increased energy efficiency (European Commission, 2009). Energy efficiency improvement has the unquestionable benefits to reduce the price of energy services. However, it is still under debate the extent to which, improvement in the productivity of energy, is effective in terms of reducing the consumption of energy and thus the associated negative externalities (e.g., carbon dioxide emissions, CO2). Thus, policy makers are particularly interested to determine the size of the energy rebound effect. In this paper, we attempt to quantify the magnitude of the general equilibrium rebound effects from an increase in energy efficiency in the industrial use of energy in Italy. To this end, we use a large-scale numerical dynamic general equilibrium model calibrated using the Italian Social Accounting Matrix for the year 2010.
3 citations
Cites background from "Energy efficiency and consumption —..."
...According to Greening et al. (2000) and Barker et al. (2007), the rebound effect can be further classified as direct, indirect and wide general equilibrium rebound effects....
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References
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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