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: Flachsland et al. as mentioned in this paper evaluated the effectiveness and efficiency of current climate policies for road transport that target fuel producers and/or car manufacturers, and influence use of alternative fuels and technologies.
107 citations
Cites background from "Energy efficiency and consumption —..."
...Based on a review of 22 studies Greening et al. (2000) suggest a potential size of the rebound effect in the transport sector between 10% and 30%....
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TL;DR: Wang et al. as discussed by the authors proposed an energy efficiency index based on the data envelopment analysis approach, which is used to examine energy efficiency in China using 1997-2006 panel data for 29 provinces.
Abstract: This paper proposes an energy efficiency index based on the data envelopment analysis approach. The index is used to examine energy efficiency in China. Using 1997–2006 panel data for 29 provinces, we find that energy efficiency is negatively associated with the secondary industry share in GDP, the state-owned economic share in GDP and the government expenditure share in GDP, and is positively associated with the technical level and non-coal share in energy consumption. In addition, we find that there exists a large gap in energy efficiency among eastern, central and western regions. The eastern region has a significantly higher energy efficiency level than the central and western regions. We conclude that the different levels of industry structure, government intervention, energy structure, and the technology content in the three regions lead to the differences in energy efficiency.
106 citations
TL;DR: In this paper, it has been argued that servicizing business models, under which a firm sells the use of a product rather than the product itself, are environmentally beneficial, and the main arguments are as follow.
Abstract: It has been argued that servicizing business models, under which a firm sells the use of a product rather than the product itself, are environmentally beneficial. The main arguments are as follow. ...
106 citations
TL;DR: In this paper, a double logarithm energy demand model and an error correction model of the asymmetric demand responses of electricity price changes to empirically analyse the direct rebound effect on residential electricity use in Beijing are presented.
Abstract: Energy efficiency improvement policies have special significance for carbon emissions reduction and the mitigation of the effects of climate change. However the energy rebound effect caused by technological progress will indirectly increase energy consumption. The magnitude of the rebound effect largely determines the effectiveness of energy efficiency in mitigating energy consumption. This study reviews the main theory behind estimated methods of energy rebound effect measurement, focuses on constructing a double logarithm energy demand model and an error correction model of the asymmetric demand responses of electricity price changes to empirically analyse the direct rebound effect on residential electricity use in Beijing. It integrates consumer׳s demand theory with the embodied electricity of household spending from a seven-sector environmental energy-input–output (E-I-O) analysis to estimate the indirect rebound effect. The three income-elasticity, weight change, and proportional re-spending scenario simulation results show that: residential electricity use in Beijing exhibits a partial rebound effect, and the long-term direct and indirect rebound effects are 46% to 56%, and the short-term direct rebound effect is 24% to 37%. Finally, the direct and indirect energy rebound effect for various income groups needs further research. An appropriate policy mix should be adopted to mitigate effectively the rebound effect in China’s current lower energy price and lower energy efficiency market.
105 citations
TL;DR: A ‘two-factor’ appraisal method is proposed to separate investments into those related to energy efficiency improvements, and thoserelated to building renovation, by using a building rehabilitation coefficient.
105 citations
Cites background from "Energy efficiency and consumption —..."
...In their survey, Greening et al. (2000) estimated the potential size of the rebound effect for space heating in the US to be between 10% and 30%....
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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