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.

The Impact of Increased Efficiency in the Transport Sectors‟ Energy Use: A Computable General Equilibrium Analysis for the Botswana Economy

Abstract: Energy efficiency is viewed as a tool for achieving both sustainable development and environmental sustainability in Botswana and world-wide. This is premised on the standard wisdom that energy-augmenting technical progress reduces aggregate energy consumption. In the energy economics literature, there is disagreement as to whether the beneficial effect of energy efficiency stimulus on energy consumption is partially or wholly counteracted by the negative effect of the response of the economic system to a fall in the relative price of energy services caused by an energy efficiency shock. This paper uses a computable general equilibrium model of energy-economy interactions for Botswana to explore the consequences of energy efficiency enhancement in the transport sectors. These sectors are among those targeted to be energy-efficient by 2016 and are the largest energy-consumers. The evidence shows that efficiency improvement in the transport sectors‟ energy use stimulates economic activity and results in modest conservation of both total energy and petroleum, but increases non-petroleum use, implying that there are large rebound effects on total energy and petroleum consumption of 95 percent and 91 percent, respectively, and a backfire effect of 101 percent for non-petroleum consumption. The results do not undermine a policy of inreasing energy efficiency, but underscore that government needs to design a package of energy policies if it wishes to achieve energy conservation that will substantially reduce carbon emissions. Keywords: Energy efficiency, Rebound effect, Backfire, Transport energy demand, CGE Models, Conservation, Botswana

Climate Policy in Power Sector: Feed-in Tariff and Carbon Pricing

Abstract: The purpose of this chapter is to investigate the effects of some mainstream policy schemes in the power sector on the reduction of CO2 emissions. The first part of this chapter is the analysis on the effects of promoting generation (fuel) efficiency of fossil-fuel power generation, specifically assuming more efficient coal-fired power plants that recently indicates increased presence in the Japanese power sector. Improvement in generation efficiency of fossil-fuel power plants is expected to reduce emissions of carbon dioxide mainly from a technological aspect. However, overall effects on carbon reduction in the whole industry would be ambiguous since it also depends on market structure. The increased efficiency in generation leads to an improvement in cost conditions of fossil-fuel power producers relative to their rivals. It enables them to expand their generation and market share. Analyzing the Cournot oligopoly model, it is shown that an improvement in fossil-fuel power generations produces two effects: the ‘saving effect’ and the ‘rebound effect’. The total CO2 emission in the whole industry decrease if the former effect exceeds the other, and vice versa. In addition, it is indicated that a rise in the generation efficiency would increase a difficulty of implementing carbon tax. In the second part of this chapter, I study the combination of feed-in tariff and carbon tax; that would be worthy to investigate since they could possibly complement each other. FIT policy could be financed by the revenue of carbon tax, and a reduction in electricity supply by the carbon tax would be lessen by supporting renewable power generations under FIT. It is demonstrated that FIT had the combined effects: it fosters a competitive environment in addition to indirectly reduces CO2 emissions. The result indicates that the combination of these policies would produce potential welfare gains.

Effizienz und Innovation – Allheilmittel ohne Nebenwirkungen? (Essay) | Efficiency and innovation – panacea with no side effects? (Essay)

Abstract: In this essay, the “efficiency” and “innovation” approaches to the reduction of foreseeable shortages of resources in the timber industry are critically considered. Efficiency gains and the resultant price reductions have led and still lead to an increase in consumption, whereby the savings achieved by the efficient use of resources are reduced (rebound effect) or even completely eaten up (backfire effect). Innovations also often result in increased use, as can be seen in the case of energy consumption. Two alternative conceptual and procedural approaches are presented in contrast to the concepts of efficiency and innovation: the consistency concept requires thought and action in cycles and the use of materials which fit in best with the natural cycles. The sufficiency concept envisages a reduction in the use of resources by means of the frugality of each individual. Humans as consumers are invited to consider critically and honestly their own lifestyle and their role in the current economic system.