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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13 Oct 2008
TL;DR: This work is provided for non-commercial use only and permission is required from RAND to reproduce, or reuse in another form, any of the authors' research documents for commercial use.
Abstract: Assesses the social welfare implications of a policy of requiring 25% of electricity and motor vehicle transportation fuels supplied to US consumers to come from renewable energy sources, such as wind power and ethanol, by 2025
2 citations
15 Jul 2018
TL;DR: This study proves that the rebound effect exists in smart homes and measures the size of rebound effect through two experiments, showing that when electricity bills decreased and electricity use suggestions were provided, the electricity use significantly increased.
Abstract: The rebound effect refers to the increase in energy use resulting from reduced energy costs and improved energy efficiency. This study proves that the rebound effect exists in smart homes and measures the size of rebound effect through two experiments. Results show that when electricity bills decreased and electricity use suggestions were provided, the electricity use significantly increased. The size of rebound effect was 13.5% in both cases. When electricity use suggestions were provided, the size of rebound effect of illumination settings was highest (20.24%), while the size of rebound effect of appliance settings was lowest (6.42%). The rebound effect in future smart homes can be reduced by (1) providing real-time electricity bills information combined with electricity use feedback; (2) offering electricity use suggestions through intelligent learning.
2 citations
TL;DR: In this article , the authors developed a metric to account for both carbon intensity and the demand response to price in technology evaluation, for use by distributed decision-makers in industry and government, who are becoming increasingly involved in climate change mitigation as the costs of lower-carbon technologies fall.
Abstract: The carbon intensity (CI) of travel is commonly used to evaluate transportation technologies. However, when travel demand is sensitive to price, CI alone does not fully capture the emissions impact of a technology. Here, we develop a metric to account for both CI and the demand response to price (DR) in technology evaluation, for use by distributed decision-makers in industry and government, who are becoming increasingly involved in climate change mitigation as the costs of lower-carbon technologies fall. We apply this adjusted carbon intensity (ACI) to evaluate ethanol-fueled, hybrid, and battery electric vehicles individually and against policy targets. We find that all of these technologies can be used to help meet a 2030 greenhouse gas emissions reduction target of up to 40% below 2005 levels and that decarbonized battery electric vehicles can meet a 2050 target of 80%, even when evaluated using the ACI instead of CI. Using the CI alone could lead to a substantial overshoot of emissions targets especially in markets with significant DR, including in rapidly growing economies with latent travel demand. The ACI can be used to adjust decarbonization transition plans to mitigate this risk. For example, in examining several transportation technologies, we find that accelerating low-carbon technology transitions by roughly 5-10 years would mitigate the risk associated with DR estimates. One particularly robust strategy is to remove carbon from fuels through faster decarbonization of electricity and vehicle electrification.
2 citations
08 Apr 2019
TL;DR: In this paper, the authors focus on the impact of SPS on l'economie de service, i.e., the rentabilite of l'Economie de Service for les entreprises impliquees.
Abstract: Le passage a une economie de service pourrait contribuer a reduire considerablement les impacts environnementaux relies a nos activites. Pour que le potentiel de reduction des systemes produit-service (SPS) se concretise, il faut que ces modeles d’affaires soient rentables pour les entreprises, que les usagers y trouvent leur compte et que les SPS soient moins polluants que les produits qu’ils remplacent. Au niveau economique, plusieurs exemples montrent que les SPS sont avantageux pour les producteurs qui peuvent, a travers ces modeles, augmenter leur chiffre d’affaires, profiter d’une stabilisation des revenus et augmenter leurs profits. Pour les consommateurs, les SPS, qui remettent entre les mains des producteurs toutes les notions d’achat, de gestion, d’entretien et de reparation, sont souvent moins chers et mieux adaptes que les produits qu’ils remplacent. Au niveau environnemental, par contre, bien que plusieurs gains encourageants soient observes, le bilan global reste extremement difficile a realiser. Les offres de SPS sont tres variees et chaque contexte necessiterait une analyse des impacts directs et indirects qui est unique. L’objectif de cet article sera donc de faire le point sur l’economie de service en couvrant principalement trois aspects : 1) la rentabilite de l’economie de service pour les entreprises impliquees; 2) sa rentabilite pour les clients et 3) les impacts environnementaux de l’economie de service. De plus, l’article fera ressortir les categories d’entreprises les plus susceptibles de profiter des SPS.
2 citations
01 Jan 2010
TL;DR: In this paper, the authors examined the impact of the rebound effect on Swedish energy policy and concluded that policies trying to induce energy efficiency improvements by attempting to raise the price of energy will also mitigate the rebound effects.
Abstract: Improving energy efficiency is a popular means of reducing consumption of energy. When energy efficiency is improved, the marginal cost of energy and energy services will fall, leading to an increase in demand. This is called the rebound effect. This paper explains how the rebound effect arises and what determines the size of it. By examining existing research, it finds that rebound effects are ultimately determined by the price elasticity of demand for energy services, but that the research which is most reliable shows that these effects are small. The paper subsequently discusses the implications the rebound has on energy policy, with a focus on Swedish energy policy. It concludes that policies trying to induce energy efficiency improvements by attempting the raise the price of energy will also mitigate the rebound effect, indicating that these policies are more appropriate if rebound effects are large.
2 citations
Cites background from "Energy efficiency and consumption —..."
...This is known as the rebound effect (Greening et al., 2000)....
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...Since energy is a relatively minor share of an individual consumer's total expenditures, the secondary effects are probably insignificant” (Greening et al., 2000)....
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...If it is greater than 1, then the total energy consumption will increase as a result of the increased productivity of energy (Greening et al., 2000)....
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...…distinction between the direct and indirect rebound effects are fairly straightforward to handle theoretically, as seen above, it is generally ignored in empirical estimates of the rebound effect (Binswanger, 2001), usually because of restrictions due to data availability (Greening et al., 2000)....
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...Most of the findings are based on models and simulations (Greening et al., 2000)....
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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