Q2. What is the net result of the income and substitution effects for the relevant energy service?
The direct rebound effect represents the net result of the income and substitution effects for the relevant energy service, while the indirect rebound effect represents the net result of income and substitution effects for all the other goods and services purchased by the household - including other energy services.
Q3. What are the benefits of making energy services cheaper?
By making energy services cheaper, energy efficiency improvements increase the real income of households, thereby permitting increased consumption of all goods and services and increased ‘utility’ or consumer satisfaction.
Q4. What is the effect of a transition to a low carbon generating system?
A transition to a low carbon generating system will increase the rebound effect (in GHG terms) from such measures and ultimately create the risk of backfire - with an increasing portion of these emissions occurring overseas.
Q5. What is the impact of energy efficiency measures on global GHG emissions?
If consumption of energy services were to remain unchanged, there would be a corresponding reduction in household electricity and/or fuel use and the associated GHG emissions.
Q6. What is the rebound effect for energy efficient lighting?
The estimated rebound effect for energy efficient lighting is influenced by their modelling of the heat replacement effect (i.e. the increased use of heating fuels to compensate for the loss of heat from incandescent bulbs).
Q7. How do the authors calculate the average annual real disposable income for a household?
For simplicity, the authors assume that households save a fixed fraction (r)5 of their disposable income each year:tt YrS ∆=∆ (11)The authors assume that the remainder is entirely distributed between expenditure on differentcategories of goods and services – including electricity and fuels.
Q8. What is the impact of installing solar thermal panels on the UK?
Since the CDEM cannot be used to simulate solar thermal heating, the authors use a variety of sources to estimate the potential energy savings from fitting solar thermal panels to the estimated 40% of UK households with south facing roofs (see Annex 2).
Q9. What is the effect of energy efficiency on the GHG emissions?
the embodied and income effects will not reduce as much as the engineering effect because: first, electricity only accounts for a portion of the relevant emissions; second, at least 40% of embodied GHG emissions originate from countries outside the UK (including China), many of whom will much make slower progress than the UK in reducing the GHG intensity of their manufacturing industries (Druckman and Jackson, 2008); and third, rising electricity prices should increase the cost savings from efficiency improvements which in turn will increase the associated income effects.
Q10. What are the two types of models used to determine the net effect of the household on energy use?
The former are derived from a combination of Environmentally-Extended Input-Output models and Life Cycle Analysis (LCA), while the latter are derived from the econometric analysis of survey data on household expenditure.
Q11. What is the effect of the energy price increases on household incomes and expenditures?
These energy price increases will reduce real household incomes and expenditures and hence reduce both energy-related and total GHG emissions.
Q12. What is the impact of other transport on the income effect?
In contrast, other transport is only one third as GHG intensive as vehicle fuels, but accounts for 26% of the estimated income effect owing to its large expenditure share (11.5%), and high income elasticity (0.5).
Q13. How much of the energy consumed by an average household in 2009 was embodied?
30As indicated in Table 7, the authors estimate that an average English household consumed approximately 22.5MWh of electricity and fuels in 2009 at a total cost of ~£1100, of which 90% was consumption related (unit costs) and the remainder standing charges.
Q14. What is the net result of the rebound effect?
Their methodology also neglects any responses on the production side of the economy, the net result of which could also be to increase economy wide rebound effects.