Showing papers on "Rebound effect (conservation) published in 2001"

Energy Efficiency and the Rebound Effect: Does Increasing Efficiency Decrease Demand?

Abstract: Intuitively it seems obvious to most observers that increasing energy efficiency will ultimately reduce demand for an energy resource such as electricity. Paradoxically, economic theory suggests that this decrease in demand and subsequent decrease in cost of using the resource could cause a rebound in demand. A commonly cited example is an increase in the efficiency of home air conditioning which may reduce the resident’s monetary incentive to conserve. The resident may opt to change the thermostat setting to keep the amount he pays constant, but living at a more comfortable temperature. When actually measured this “Rebound Effect” is generally acknowledged to lower predicted reductions in electricity demand by 10%-40% depending on the device that is made more efficient.

Are we chasing our tail in the pursuit of sustainability

Abstract: People are urged to change their pattern of consumption and lifestyle in a more environment-friendly direction. More eco-efficient products and production are also developed. But when governments strive to promote economic growth, consumers may be urged to consume more to cure or prevent a stagnating economy. Here is an obvious contradiction. Gains in eco-efficiency are likely to be annihilated by greater consumption - the so-called rebound effect - resulting in an increased throughput in the economy. This paper takes a look at various means to handle the economic surplus in order to avoid or balance this effect. Environmental policies (including such measures as green taxes) may redirect consumption from one kind to another, but this demands that the alternative spending is less harmful than the one dissuaded. Other possibilities tested are to alter the sector mix of the economy and work-sharing to match the increasing efficiency.