Showing papers on "Rebound effect (conservation) published in 2007"

Fuel efficiency and motor vehicle travel: the declining rebound effect

Abstract: It has long been realized that improving energy efficiency releases an economic reaction that partially offsets the original energy saving. As the energy efficiency of some process improves, the process becomes cheaper, thereby providing an incentive to increase its use. Thus total energy consumption changes less than proportionally to changes in physical energy efficiency. For motor vehicles, the process under consideration is use of fuel in producing vehicle-miles traveled (VMT). Our empirical specification is based on a simple aggregate model that simultaneously determines VMT, vehicles, and fuel efficiency. The coefficient on the lagged dependent variable implies considerable inertia in behavior, with people adjusting their travel in a given year by just 21 percent of the ultimate response to a permanent change. The equation exhibits only mild autocorrelation, giving people confidence that their specification accounts for most influences that move sluggishly over time.

The rebound effect: an assessment of the evidence for economy-wide energy savings from improved energy efficiency

Abstract: The UK Energy Research Centre (UKERC) has launched a major new report on how 'Rebound Effects' can result in energy savings falling short of expectations, thereby threatening the success of UK climate policy. An example of a rebound effect would be the driver who replaces a car with a fuel-efficient model, only to take advantage of its cheaper running costs to drive further and more often. Or a family that insulates their loft and puts the money saved on their heating bill towards an overseas holiday.

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 improvements by econometrically estimating the rebound effect, which measures the extent to which higher efficiency causes additional travel.Following a theoretical 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 spurious results. Our results, which range between 57% and 67%, indicate a rebound that is substantially larger than obtained in other studies, calling into question the efficacy of policies targeted at reducing energy consumption via technological efficiency.

UKERC Review of evidence for the rebound effect: Technical report 5: Energy, productivity and economic growth studies

Abstract: This report forms part of the TPA’s assessment of evidence for a rebound effect from improved energy efficiency. Technical Report 5 focuses upon the relationship between energy, productivity and economic growth and examines the claim that improved energy efficiency will increase economy-wide energy consumption - the so-called ‘Khazzoom-Brookes postulate’.

UKERC Review of evidence for the rebound effect: Technical report 3: Elasticity of substitution studies

Abstract: This Working Paper forms part of the TPA’s assessment of evidence for a rebound effect from improved energy efficiency. Technical Report 3 focuses upon empirical estimates of the elasticity of substitution between energy and capital. This parameter has been identified as a key determinant of the likely magnitude of the rebound effect in different sectors. The report clarifies the meaning and importance of this parameter, summarises and compares empirical estimates of this parameter, evaluates the reasons that have been proposed for the differing results, discusses whether a consensus has been reached to whether energy and capital can be considered as ‘substitutes’ or ‘complements’ and draws some implications for the rebound effect.

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 improvements by econometrically estimating the rebound effect, which measures the extent to which higher efficiency causes additional travel. Following a theoretical 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 spurious results. Our results, which range between 57% and 67%, indicate a rebound that is substantially larger than obtained in other studies, calling into question the efficacy of policies targeted at reducing energy consumption via technological efficiency.

If Cars Were More Efficient Would We Use Less Fuel

Abstract: If Cars Were More Efficient, Would We Use Less Fuel? B Y K E N N E T H A . S M A L L A N D K U R T VA N D E N D E R R EDUCING US GA SOLINE CONSUMPTION MIGHT SEEM A straightforward task: just increase vehicle fuel efficiency, also known as miles per gallon (MPG). That, of course, is the principle behind the existing Corporate Average Fuel Economy (CAFE) standards. But it’s not that simple. If MPG improves, the cost to drive a mile declines, so people drive more. Some critics have even argued that this “rebound” effect is so large that not much gasoline is saved, and other problems such as congestion are exacerbated. Is this right? Our research measures the size of the rebound effect and discovers that it is not large. Moreover, we find that it has become smaller over time, and is likely to become smaller still. This means that improved fuel efficiency does translate into lower fuel consumption. Our results also have implications for the policy choice between CAFE standards and fuel taxes as ways to reduce energy consumption. This is easiest to understand by relating the rebound effect to a slightly different question: how do drivers respond to changes in fuel prices? Kenneth Small is research professor and professor emeritus of economics at UC Irvine (ksmall@uci.edu). Kurt Van Dender is associate professor of economics at UC Irvine, currently on leave at the Joint Transport Research Centre of the International Transport Forum and the Organisation for Economic Co- operation and Development (kvandend@uci.edu). A C C E S S

Does the Rebound Effect Exist

Abstract: Self-help books often advise readers to avoid rushing into new relationships after a break-up. To date, there is little evidence supporting this recommendation. This paper tests the effects of rebound time, measured as time elapsed between marital dissolution and the formation of a new union, on remarriage duration. Data from the first wave of the National Survey of Families and Households and generalized additive models reveal no evidence of a rebound effect. This finding holds after adjusting for various demographic differences between respondents.

The Causality Link between Energy Prices, Technology and Energy Intensity

Abstract: This chapter deals with a field of renewed interest in energy economics: the relationship between energy prices and energy intensity, which is measured by the ratio of final energy consumption to total output (GDP).1 For years, economic papers have been studying energy intensity through the decomposition of the energy demand (Wing and Eckaus, 2004, and Liu, 2005). The link between energy prices and energy intensity has not really been analysed and is nowhere nearly as well established as other relations. A third variable, technological progress, may interfere in this relation. In a first analysis, it appears that technological changes can be stimulated by energy price increases and more efficient equipment reduces the energy demand. At the same time, an increase of energy demand is possible through a change in habits of consumption (changes in energy services, or energy use, and so forth). The causality link is complicated by this variable technology and its effects on energy consumption.

Identifying the Rebound: Theoretical Issues and Empirical 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 improvements by econometrically estimating the rebound effect, describing the extent to which higher efficiency causes additional travel.Following a theoretical 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 spurious results. Our results, which range between 56% and 66%, indicate a rebound that is substantially larger than obtained in other studies, calling into question the efficacy of recently implemented measures in the European Union targeted at technological innovations in the automotive sector.

Energy efficiency - Trends, determinants, trade-offs and rebound effects with examples from Swedish housing

Abstract: This thesis is based on five separate papers. The first paper analyses the development of the Swedish building sector over time by decomposing CO2 emissions in underlying trends, and studying separate energy use trends for existing buildings, new buildings and best available technology. The results show rapid improvements in energy efficiency during the seventies, but that this development stagnated in both existing and new buildings in the late eighties and nineties, and that the diffusion of energy efficient technologies appears to be slow. The specific energy use for heating in average new buildings is twice as high as in the best performing buildings 20 years ago. The second paper deals with the causes of these trends, including an econometric part and a qualitative part. The third paper handles indirect energy use and CO2 emissions coupled to the production phase of buildings. Results from an input-output analysis are disaggregated into activities and materials which can be compared to results from bottom-up studies. The results show only minor differences for production and processing of building materials, but for other upstream sectors such as transport, services and production of machines, the input-output analysis gives much higher values. This implies that bottom-up studies may underestimate the relative importance of energy use in the production phase in relation to the use phase. The forth paper handles rebound effects of energy efficiency improvements caused by decreasing prices of energy services as well as by reduced direct energy expenditures which can be redirected to other goods and services. Different parameter assumptions are tested. The total rebound effects of energy efficiency appear to be in the range of 5 to 15 percent in most cases, but cases with low or negative investment costs for energy efficiency may result in higher values. The fifth paper is an optimization study on the potential trade-offs between energy efficient supply systems (combined heat and power/district heating) and energy efficient end-use of heat. The cost effective solution depends to a large extent on the relation between the electricity price and the CO2 price. This in turn depends on what technologies that are available for electricity production. Without alternatives to basic condensing electricity production, high CO2 prices result in high electricity prices, high profitability of combined heat and power and thus little incentive to reduce heat demand. In contrast, if low CO2 alternatives are available, the electricity price levels out at high CO2 prices. In this case, end-use efficiency measures may be cost effective also in buildings with district heating.

Identifying the Rebound: Theoretical Issues and Empirical 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 improvements by econometrically estimating the rebound effect, describing the extent to which higher efficiency causes additional travel.Following a theoretical 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 spurious results. Our results, which range between 56% and 66%, indicate a rebound that is substantially larger than obtained in other studies, calling into question the efficacy of recently implemented measures in the European Union targeted at technological innovations in the automotive sector.

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 improvements by econometrically estimating the rebound effect, which measures the extent to which higher efficiency causes additional travel.Following a theoretical 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 spurious results. Our results, which range between 57% and 67%, indicate a rebound that is substantially larger than obtained in other studies, calling into question the efficacy of policies targeted at reducing energy consumption via technological efficiency.

An integrated model for evaluating environmental impact of consumer's behavior: Consumption 'technologies' and the waste input-output model

Abstract: This paper is concerned with a new integrated analytical model for evaluating environmental loads induced by consumer behavior. The model consists of two components: One is the waste input-output (WIO) model that is a consistent framework for the hybrid life-cycle assessment and life-cycle costing. The other is an economics model of consumer behavior within the constraints of limited income and time based on the concept of consumption ‘technologies.’ Because consumers are regarded as industrial sectors in the newly developed model, not only time and income rebound effects but also a part of the so-called economy-wide rebound effects is accounted for.

The Limits to Energy Efficiency: Time to Beat the Rebound Effect

Abstract: While the previous chapter has presented technical solutions to reducing energy use, this chapter first looks at the historic failure of this approach to reduce consumption and then at how we might do better. The simple message is that achieving reductions in energy use, and consequent greenhouse gas emissions, is not simply a matter of technology. What also matters is how we use the technology and what our expectations of it are. This can be illustrated by an example.

The Effect of Rebound Effect on Sustainable Transportation Demand

Abstract: Overview Increasing the efficiency of vehicles is an important method of reducing the fuel consumption and motor vehicle emissions. On the other hand, increasing fuel efficiency would lead to reduction in the per mile cost of driving and it tends to increase the total vehicle mileage. This is called rebound effect. The rebound effect will result in an increase in emissions due to the increased vehicle travel. Another consequence of rebound effect is that the rate of annual increase of passenger and freight transport service is more than increasing the number of vehicles. The extent of the rebound effect varies depending on many factors, but it often reduces the effectiveness of a policy. Greene concludes that the long-term impact of rebound effect is 20%. In other words, if increasing fuel economy reduces the cost of fuel by 10% per mile of travel, travel increases by 2%. The present paper is supposed to investigate the rebound effect through a case study that will be the analysis of energy consumption and emission of pollutants in the transport sector of Iran and the impact of rebound effect.