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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.


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TL;DR: In this article, the authors examined the macroeconomic rebound effect for the global economy arising from energy-efficiency policies, which refers to the idea that some or all of the expected reductions in energy consumption as a result of energy efficiency improvements are offset by an increasing demand for energy services.
Abstract: This paper examines the macroeconomic rebound effect for the global economy arising from energy-efficiency policies. Such policies are expected to be a leading component of climate policy portfolios being proposed and adopted in order to achieve climate stabilisation targets for 2020, 2030 and 2050, such as the G8 50% reduction target by 2050. We apply the global “New Economics” or Post Keynesian model E3MG, developing the version reported in IPCC AR4 WG3. The rebound effect refers to the idea that some or all of the expected reductions in energy consumption as a result of energy-efficiency improvements are offset by an increasing demand for energy services, arising from reductions in the effective price of energy services resulting from those improvements. As policies to stimulate energy-efficiency improvements are a key part of climate-change policies, the likely magnitude of any rebound effect is of great importance to assessing the effectiveness of those policies. The literature distinguishes three types of rebound effect from energy-efficiency improvements: direct, indirect and economy-wide. The macroeconomic rebound effect, which is the focus of this paper, is the combination of the indirect and economy-wide effects. Estimates of the effects of no-regrets efficiency policies are reported by the International Energy Agency in World Energy Outlook, 2006, and synthesised in the IPCC AR4 WG3 report. We analyse policies for the transport, residential and services buildings and industrial sectors of the economy for the post-2012 period, 2013–2030. The estimated direct rebound effect, implicit in the IEA WEO/IPCC AR4 estimates, is treated as exogenous, based on estimates from the literature, globally about 10%. The total rebound effect, however, is 31% by 2020 rising to 52% by 2030. The total effect includes the direct effect and the effects of (1) the lower cost of energy on energy demand in the three broad sectors as well as of (2) the extra consumers’ expenditure from higher (implicit) real income and (3) the extra energy-efficiency investments. The rebound effects build up over time as the economic system adapts to the higher real incomes from the energy savings and the investments.

188 citations

Journal ArticleDOI
TL;DR: In this article, the authors examine the extent to and ways in which the rebound effect is considered in policy documents and analyse thirteen specific policy pathways for rebound mitigation, and conclude that an appropriate policy design and policy mix are key to avoiding undesired outcomes, such as the creation of additional rebound effects and environmental trade-offs.

185 citations

Journal ArticleDOI
TL;DR: The findings of the study support the argument that energy efficiency improvements for both consumers and producers, stimulated by policy incentives, will lead to significant reductions in energy demand and hence in greenhouse gas emissions.

183 citations

Journal ArticleDOI
TL;DR: In this paper, the potential for energy efficiency improvements to trigger economic forces that offset potential savings from using more efficient technologies (rebound effects) is explored, and the results suggest significant and surprising differences across sectors concerning both energy use and consequences for the build-up of greenhouse gases.

181 citations

Journal ArticleDOI
TL;DR: The authors provide an accessible summary of the state of knowledge on this issue and show how separate areas of research can provide relevant insights: namely neoclassical models of economic growth, computable general equilibrium (CGE) modelling and alternative models for policy evaluation.

179 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
202320
202268
202166
202061
201967
201860