Rebound effect (conservation)

About: Rebound effect (conservation) is a research topic. Over the lifetime, 773 publications have been published within this topic receiving 25741 citations.

A Behavioural Rebound Effect: Results from a laboratory experiment

Abstract: Significant attention has been paid to leveraging behavioural motivators (non-price interventions) to increase energy conservation (Allcott and Mullainathan, 2010). Technological change that improves energy efficiency is also important (The Global Commission on the Economy and Climate, 2014). While both focus on reducing energy use, these two strands of literature have yet to be joined to con-sider what behavioural effects might result from technology change. The direct rebound effect is the increase in consumption due an increase in energy efficiency and can be modelled as the rational response to a change in relative prices (Chan and Gillingham, 2015). This paper investigates whether there might also be a be-havioural rebound effect by looking at two potential sources. First, a behavioural rebound effect where pro-environmental behaviours are reduced after an improve-ment in energy efficiency. Second, moral licensing may increase the behavioural rebound effect if individuals who buy an energy efficient product subsequently give themselves psychological licence to reduce their pro-environmental behaviours even further. I develop a novel laboratory experiment to investigate these mechanisms, which can be cleanly isolated in the laboratory without the many confounds po-tentially present in the field, such as other motivations to reduce energy usage like saving money. Subjects must decide how to allocate their effort, in a real effort task, between earning money for themselves and reducing damages to a tree plant-ing charity. I find evidence for a behavioural rebound effect, which is estimated to be 32% in this laboratory setting. Moral licensing also occurs, increasing the size of the behavioural rebound effect, and it is strongest among subjects with a higher level of pro-environmental orientation of their attitudes and beliefs. The main driver of pro-environmental effort is shown to be beliefs about social norms. This paper extends the core model of the rebound effect, and the findings can help inform policies to encourage proenvironmental behaviours within the context of constantly improving environmental efficiency of technology.

The Microeconomic Theory of the Rebound Effect: Nuances, Externalities, and Welfare

Abstract: Economists have long noted that improving energy efficiency could lead to a rebound eff ect, reducing or possibly even eliminating the energy savings from the efficiency improvement Yet there are important nuances in the microeconomic theory of the rebound eff ect that have not been explored This paper develops a generalized model illuminating the eff ects of an exogenous change in energy efficiency on energy use, external costs, and welfare This model overturns conventional wisdom by showing how several identities that are frequently used to estimate the rebound eff ect no longer hold in a generalized setting We clarify the relationship between the direct rebound effect and the indirect rebound, and highlight the importance of complement/substitute relationships between energy services Furthermore, by including external costs in our model, we develop conditions under which the rebound is welfare-improving and show how the rebound influences the welfare consequences of energy efficiency policies

Economy-wide rebound effects from an increase in efficiency in the use of energy: the Italian case

Abstract: The International Energy Agency (IEA, 2009) suggests the importance of efficiency improvement to reduce energy use and, within the European Union, one of the targets for member states is to reduce energy consumption by 20% through increased energy efficiency (European Commission, 2009). Energy efficiency improvement has the unquestionable benefits to reduce the price of energy services. However, it is still under debate the extent to which, improvement in the productivity of energy, is effective in terms of reducing the consumption of energy and thus the associated negative externalities (e.g., carbon dioxide emissions, CO2). Thus, policy makers are particularly interested to determine the size of the energy rebound effect. In this paper, we attempt to quantify the magnitude of the general equilibrium rebound effects from an increase in energy efficiency in the industrial use of energy in Italy. To this end, we use a large-scale numerical dynamic general equilibrium model calibrated using the Italian Social Accounting Matrix for the year 2010.

Economic Efficiency, Environmental Effectiveness and Political Feasibility of Energy Efficiency Rebates: The Case of the Spanish Energy Efficiency Renove Plan

Abstract: Energy labels are used to promote the purchase of efficient appliances. Many countries in Europe use subsidies (namely energy efficiency rebates) to support these purchases as it is the case of Spain. A figure ranging from 50 to 105€ subsidy has been granted in the past for the acquisition of the most efficient appliances. This paper first analyses the impact of a 80€ subsidy on the dishwasher market and compares the results with a 40 € tax for non-labelled ones. The results take into account the effects that the policies generate in the market segment that is a close substitute, that is, cross effects. The paper shows that the subsidy is expensive for the Government, generates some welfare losses and it also generates a rebound effect as a consequence of the increase in the total number of appliances sold. The 40 € tax does not cost money to the Government, it generates a lower welfare loss and reduces the energy bill. However, the analysis is extended to go beyond the two extreme scenarios: subsidies without taxes and taxes without subsidies. Different combinations of both instruments are suggested and they are assessed based on their performance regarding economic efficiency, environmental effectiveness and political feasibility.