Manuel Frondel, Jörg Peters, and Colin Vance
Evidence from a German Household Panel
#32
Ruhr Economic Papers
RW I
ESSEN
Ruhr Economic Papers
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Ruhr Economic Papers #32
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ISSN 1864-4872 (online) – ISBN 978-3-86788-028-2
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Ruhr Economic Papers
#32
Manuel Frondel, Jörg Peters, and Colin Vance
RW I
ESSEN
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ISSN 1864-4872 (online)
ISBN 978-3-86788-028-2
Manuel Frondel, Jörg Peters, and Colin Vance*
Identifying the Rebound –
Evidence from a German Household Panel
Abstract
Using a panel of household travel diary data collected in Germany between
1997 and 2005, this study assesses the effectiveness of fuel efficiency improve
-
ments by econometrically estimating the rebound effect, which measures the
extent to which higher efficiency causes additional travel. Following a theoret-
ical discussion outlining three alternative definitions of the rebound effect, the
econometric analysis generates corresponding estimates using panel methods
to control for the effects of unobservables that could otherwise produce spuri-
ous results. Our results, which range between 57% and 67%, indicate a re-
bound that is substantially larger than obtained in other studies, calling into
question the efficacy of policies targeted at reducing energy consumption via
technological efficiency.
JEL Classification: D13, Q41
Keywords: Automobile travel, rebound effect, panel models
November 2007
* All RWI Essen. – We are grateful for valuable comments and suggestions by Christoph M.
Schmidt as well as five anonymous referees.We also would like to thank participants of the Ninth
European IAEE Conference 2007 in Florence, Italy, for constructive discussions. This paper is a
substantially revised version of the RWI : Discussion Paper No. 57, “Identifying the Rebound –
Theoretical Issues and Empirical Evidence from a German Household Panel”. – All correspon
-
dence to Manuel Frondel, RWI Essen, Hohenzollernstr. 1-3, 45128 Essen, Germany, Fax: +49 201
8149-200, Email: frondel@ rwi-essen.de.