Showing papers on "Rebound effect (conservation) published in 2008"

Consumption and the Rebound Effect: An Industrial Ecology Perspective

Abstract: Summary Measures taken to protect the environment often have other, unintended effects on society. One concern is that changed behavior may offset part of the environmental gain, something that has variously been labeled “take-back” or “rebound.” In energy economics, the rebound effect encompasses both the behavioral and systems responses to cost reductions of energy services as a result of energy efficiency measures. From an industrial ecology perspective, we are concerned about more than just energy use. Any given efficiency measure has several types of environmental impacts. Changes in the various impact indicators are not necessarily in the same direction. Both co-benefits and negative side effects of measures directed to solve one type of problem have been identified. Environment is often a free input, so that a price-based rebound effect is not expected, but other indirect effects not connected to the price, such as spillover of environmental behavior, also occur. If the costs and impact of products that are already environmentally friendly are reduced, the “rebound” can be in the opposite, desired direction. Furthermore, I identify technical spillover effects. Hence a number of related effects, often producing positive results, are not as well understood. Household environmental impact assessments and eco-efficiency assessments take into account the rebound effect, but they do not necessarily take into account these other effects. The analysis hence indicates that the current focus on the rebound effect is too narrow and needs to be extended to cover co-benefits, negative side effects, and spillover effects.

An Analysis of Sustainable Consumption by the Waste Input‐Output Model

Abstract: Summary The extension of the waste input-output (WIO) model to analyze households' sustainable consumption patterns is presented in this article. We estimate direct and indirect emission loads induced by household consumption by the WIO model. The WIO model is much more suitable for the analysis of sustainable consumption than the conventional input-output model because it can deal with the disposal stage of consumed goods as well as the purchase and use stages. A simple method for evaluating income rebound effects is also introduced. As indicators of environmental loads, we estimate carbon dioxide (CO2) emissions and landfill consumption induced by household consumption. The model is applied to some typical sustainable consumption scenarios: shifting transportation modes from a private car to public transportation, the longer use of household electric appliances, and eating at restaurants instead of cooking at home. We found that the income rebound effects should be considered to evaluate environmental loads induced by different consumption patterns.

Rebound effects of price differences

Abstract: Goal, Scope and Background Traditionally, comparative life cycle assessments (LCA) have not considered rebound effects, for instance in case of significant price differences among the compared products. No justifications have been made for this delimitation in scope. This article shows that price differences and the consequent effects of marginal consumer expenditure may influence the conclusions of comparative LCA significantly. We also show that considerations about rebound effects of price differences can be included in LCAs.

Efficiency and Distributional Impacts of Tradable White Certificates Compared to Taxes, Subsidies and Regulations

Abstract: Tradable White Certificates (TWC) schemes, also labelled Energy-Efficiency Certificates schemes, were recently implemented in Great Britain, Italy and France. Energy suppliers have to fund a given quantity of energy efficiency measures, or to buy so-called "white certificates" from other suppliers who exceed their target. We develop a partial equilibrium model to compare TWC schemes to other policy instruments for energy efficiency, i.e., energy taxes, subsidies on energy-saving goods and regulations fixing a minimum level of energy-efficiency. The model features an endogenous level of energy service and we analyse the influence of the substitutability between energy and energy-saving goods to produce the energy service, as well as the influence of the elasticity of demand for the energy service. We show that if the level of energy service consumption is fixed, a TWC scheme is as efficient as an energy tax, but that it is much less otherwise because it does not provide the optimal incentive to reduce the consumption of energy service. This inefficiency is worsened if energy suppliers' targets are fixed rather than proportional to the suppliers' current output. On the other hand, compared to taxes, a TWC scheme allows reaching a given level of energy savings with a lower increase in the consumers' energy price, which may ease its implementation.

Rebound Effect of Energy Consumption due to Technological Progress:Empirical Analysis based on Provincial Panel Data in China

Abstract: The rebound effect is an important topic in energy economics,and the size of the rebound effect of energy consumption shifts due to technology progress directly affects the effectiveness of energy policies.The rebound effect is linked to the Khazzoom-Brookes Hypothesis,and it refers to the way that technological progress can improve energy efficiency,even as the benefits from technological progress induce certain economic behaviors in individuals which counteract the potential energy savings caused by the technological progress.Therefore,gains in energy efficiency will reduce the energy input for production of one unit of energy service or economic output,but energy demand always increases along with energy efficiency improvements,offsetting a portion of the energy reduction and causing a rebound effect.We present a framework incorporating three input factors of neoclassical product functions.Nonstationary provincial panel data from 1985～2005 are utilized to test the unit root and co-integration relationship in China,and technological progress contribution rates in different regions of China during the study period are determined using the Solow remainder approach.The rebound effects of technological progress on regional energy consumption are determined according to estimated total factor productivity.The experimental results show that the size of rebound effect is declining,although it fluctuates during the research period for the whole country and particular regions,indicating that improving the technological level of energy consumption is gradually becoming an important tool to effectively utilize and reserve energy.The average rebound effect size in China during 1986～2005 is 53.68% from the macro perspective,which shows that technological progress is not only improving economic growth,but also facilitating the reduction of energy consumption.Therefore,a sole emphasis on advanced technology to improve energy utilization efficiency cannot help to achieve the goal of reducing energy consumption or thoroughly solve the problem of energy constraints,and it is necessary to enforce appropriate governmental regulations in the energy field.Due to market failures,energy prices should be regulated by collecting energy tax or through other relevant policies to influence energy demand.The average rebound effect of energy consumption due to technological progress is 53.68%,45.27%,50.33% and 58.96% for the whole country,the eastern region,the central region and the western region respectively during 1986～2005.So the rebound effect is largest in the west and smallest in the east,and the rule of reduction effect is in contrast to the rebound effect,which indicates that the eastern regions have gained the most from technological progress in respect to energy consumption.In order to thoroughly solve the problem of energy constraint,attention must be focused on the question of balanced and coordinated development between regional economies and technological progress in different areas.

A Computable General Equilibrium Analysis of the Relative Price Sensitivity Required to Induce Rebound Effects in Response to an Improvement in Energy Efficiency in the UK Economy

Abstract: In recent years there has been extensive debate in the energy economics and policy literature on the likely impacts of improvements in energy efficiency. This debate has focussed on the notion of rebound effects. Rebound effects occur when improvements in energy efficiency actually stimulate the direct and indirect demand for energy in production and/or consumption. This phenomenon occurs through the impact of the increased efficiency on the effective, or implicit, price of energy. If demand is stimulated in this way, the anticipated reduction in energy use, and the consequent environmental benefits, will be partially or possibly even more than wholly (in the case of A¢â‚¬EœbackfireA¢â‚¬â„¢ effects) offset. A recent report published by the UK House of Lords identifies rebound effects as a plausible explanation as to why recent improvements in energy efficiency in the UK have not translated to reductions in energy demand at the macroeconomic level, but calls for empirical investigation of the factors that govern the extent of such effects.Undoubtedly the single most important conclusion of recent analysis in the UK, led by the UK Energy Research Centre (UKERC) is that the extent of rebound and backfire effects is always and everywhere an empirical issue. It is simply not possible to determine the degree of rebound and backfire from theoretical considerations alone, notwithstanding the claims of some contributors to the debate. In particular, theoretical analysis cannot rule out backfire. Nor, strictly, can theoretical considerations alone rule out the other limiting case, of zero rebound, that a narrow engineering approach would imply. In this paper we use a computable general equilibrium (CGE) framework to investigate the conditions under which rebound effects may occur in the Scottish regional and UK national economies. Previous work has suggested that rebound effects will occur even where key elasticities of substitution in production are set close to zero. Here, we carry out a systematic sensitivity analysis, where we gradually introduce relative price sensitivity into the system, focusing in particular on elasticities of substitution in production and trade parameters, in order to determine conditions under which rebound effects become a likely outcome. We find that, while there is positive pressure for rebound effects even where (direct and indirect) demand for energy is very price inelastic, this may be partially or wholly offset by negative income and disinvestment effects, which also occur in response to falling energy prices.

Improved Model for Evaluating Rebound Effect of Energy Resource and Its Empirical Research

Abstract: The traditional policies and measures to improve energy efficiency are challenged severely since the existence of rebound effect and the calculation is the focus.The effect of technical progress was quantified based on logarithmic mean Divisia index(LMDI).The improved model of the rebound effect of energy resource was constructed.It is concluded from the empirical research are: the influence from technical progress to energy efficiency is a dynamic process;rebound effect fluctuates in different periods and it shows the descending trend.

Carbonomics: How to Fix the Climate and Charge It to OPEC

Abstract: Carbonomics is a 270 page book that covers national and international energy policy from an economic perspective Part 1 dismisses several popular myths including the view that any implementation of the Kyoto Protocol would wreck the economy, and that peak oil will herald an international economic collapse In Part 2, global energy markets are shown to induce a "global rebound effect" such that every gallon of oil conserved or replaced by alternative fuels induces the use of an estimated 026 additional gallons by the rest of the world through a world-oil-price effectPart 3 proposes an "untax" as the central national energy policy This would tax carbon and refund all the revenues on an equal-per-person basis This is shown to be superior, because of distributional considerations, to using a carbon tax to pay down some other tax The key assumption in this argument is that using a poll tax to pay down other taxes is generally rejected because of its distributional consequences Second, a separate carbon tax rate on oil is proposed, so that the carbon tax can accommodate oil price fluctuations A feebate for fuel efficient autos is also proposed The suggested design would help the Big Three automakers by rewarding progress rather than absolute performancePart 4 argues that developing countries will never accept meaningful emission caps and that the Kyoto Protocol should be replaced by global carbon pricing Enforcement and international fairness mechanisms are proposed The fairness mechanism is designed to avoid perverse incentives and to provide an incentive for useful emission reduction measures that are not covered by carbon pricing The fairness mechanism provides for transfer payments from countries with high emissions per capita to those with low emissions per capita This leaves China at the neutral point because its emissions are almost exactly averageThe concept of an oil consumers' cartel is discussed throughout First it is noted that any effective international climate organization will be, in effect, such a cartel Second estimates of a cartel's impact are backed out of the results of economic models, such as the DOE's model of the impacts of the Kyoto Protocol Next it is shown that climate policies could save a large fraction of their cost in reduced payments to oil exporting countries For the first decade or two of a substantial climate policy, this fraction may be greater than 100 percent Finally, Carbonomics proposes that this benefit be acknowledged during international climate negations After all, China will soon be as "addicted to oil" as is the United States, so this provides the two countries with a powerful financial incentive for cooperationThe first eight chapters are available from SSRN

The Effect of Standards and Fuel Prices on Automobile Fuel Economy: An International Analysis

Abstract: There is an intense debate over whether fuel economy standards or fuel taxation is the more efficient policy instrument to raise fuel economy and reduce CO2 emissions of cars. The aim of this paper is to analyze the impact of standards and fuel prices on new car fuel economy with the aid of cross-section time series analysis of data from 18 countries. We employ a dynamic specification of new car fuel consumption as a function of fuel prices, standards and per capita income. It turns out that standards have induced considerable fuel savings throughout the world, although their welfare impact is not examined here. If standards are not further tightened then retail fuel prices would have to remain at high levels for more than a decade in order to attain similar fuel savings. Finally, without higher fuel prices or tighter standards, one should not expect any marked improvements in fuel economy under 'business as usual' conditions.

Incorporating Demand Resources into Optimal Dispatch

Abstract: This paper presents a methodology for integrating demand response into optimal dispatch algorithms for electric power systems. Current methods to dispatch demand do not typically account for the impact of load shifting to later time periods. A critical component to properly dispatch demand resources is the inclusion of the rebound effect. Since the time scales for many demand response implementations are on the order of hours, once a demand resource has been dispatched, it is likely unavailable for re-dispatch during the same day. It is also likely that dispatched demand will increase in subsequent time periods. Incorporating the limited number of daily dispatches and the rebound effect into the optimal dispatch of demand resources is therefore necessary. This paper first provides a framework for incorporating demand resources into optimal dispatch and then presents a numeric example that compares optimal demand dispatch programs with and without the rebound effect. This comparison demonstrates the inefficiencies associated with a large-scale demand response program that does not take the rebound effect into account.

Transportation Fuel Use, Technology and Standards: The Role of Credibility and Expectations

Abstract: There is a debate among policy analysts about whether fuel taxes alone are the most effective policy to reduce fuel use by motorists, or whether to also use mandatory standards for fuel efficiency. A problem with a policy mandating fuel economy standards is the "rebound effect," whereby owners with more efficient vehicles increase vehicle usage. If an important part of negative externalities from transport are associated with vehicle kilometers (accidents, congestion, road wear) rather than fuel consumption, the rebound effect increases negative externalities. Taxes and standards should be mutually supportive because fuel taxes often meet political resistance. Over time, fuel efficiency standards can reduce political resistance to fuel taxes. Thus, by raising fuel efficiency standards now, politicians may be able to pursue higher fuel tax paths in the future. Another argument in support of fuel efficiency standards and similar policies is that standards to a greater extent than taxes can be announced in advance and still be credible and change the behavior of inventors, firms, and other agents in society. A further argument is that standards can be used with greater force and commitment through international coordination.

Modelling the energy demand of households in a combined top down/bottom up approach

Abstract: This paper deals with integrating elements of a bottom-up model of energy demand into a topdown model of total private consumption. The bottom-up elements are represented by the energy efficiency embodied in household appliances. The top-down model describes demand for energy and non-energy commodities in an AIDS demand system. In this model households do not directly demand energy, but en ergy services (hours of washing, miles of driving). These services are measured via the se rvice price defined as the relationship between the energy price and energy efficiency. Therefore an increase in energy efficiency leads to a decrease in the service price and, thereby, in creases demand for services which compensates for parts of the energy savings due to effi ciency improvements ('rebound effect'). The model presented can be used to derive different f eedbacks (rebound effects) from efficiency changes on energy demand and to quantify the role of efficiency improvements in reducing energy demand and emissions from households.

Decomposition Analysis on Dematerialization for the Further Development of Circular Economy

Abstract: Even as the concept of circular economy has made great progress in China,it is often misapplied.This paper starts from the concept of dematerialization,which is the key measure to promote the development of circular economy and maintain the equilibrium and function of the ecological-economic system.On the basis of the Laspeyres index and a complete decomposition model,we decomposed the factors related to dematerialization,and evaluated the dynamic effect on material saving due to material use intensity,economic structure,and economic scale,especially the rebound effect and dematerialized effect.We did empirical research on energy consumption during the period of 1985 to 2006 in China,calculating the effect of economy scale and material use intensity on changes in energy consumption,and analyzed the impact of economic structure adjustment on energy-saving.The result shows that expansion of economic scale is the major factor driving changes in energy consumption.The total amount of energy consumption in 21years is equivalent to 23.6×10~8 tons of coal.The inappropriate economic structure increased energy consumption by 1.82×10~8 tons of coal.From this data, we can conclude that adjustment of the economic structure played a negative role in the process of energy saving.The combined impact of economic scale and economic structure caused an increase in energy consumption.The impact of material use intensity on energy consumption was consistent,and the ratio of material use intensity of the secondary industrial sector to the total was the biggest,more than 76 percent,while primary industry and tertiary industry had relatively smaller ratios.The energy savings created by the dematerialized effect totaled 9.67×10~8 tons of coal,but this savings effect was canceled out by the expansion effect of economic scale,and thus there was an obvious rebound effect of energy consumption.Thus,research related to energy consumption should focus on decreasing energy intensity in secondary industry and improving energy utilization efficiency.In addition,we should emphasize the savings effect enabled by the proper adjustment of economic structure and control the rebound effect,and meanwhile adjust and control the path and pattern of material flow by a material intensity relative index.We also suggested that the level of Circular Economy be estimated based on the absolute dematerialization index to promote harmonious interaction between economic development and the ecological environment.