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| 1 |
ID:
150899
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| Summary/Abstract |
Subsidizing energy-efficient technologies is considered by energy and environmental organizations to be one of the most effective policies for decreasing energy consumption. In the transportation sector such policies are becoming ever more popular, and have been implemented in a considerable number of countries in recent years. Because these policies promote energy-efficient cars with lower usage costs, they may rebound and increase the distances traveled by households that have switched to energy-efficient cars. From an econometric perspective, a subsidization policy can be used as a valid instrument to identify the households’ choice of energy efficiency levels of the cars they own. This identification, in turn, can be utilized to account for endogeneity in the estimation of a rebound effect. The present study uses a natural experiment setting of such a policy implemented in Israel in 2009. The empirical results indicate a fairly large average rebound effect of 40%. The results also indicate that while the policy indeed encouraged the purchase of energy-efficient cars, households that bought a new or used car during the surveyed period did not generate a rebound effect of a different magnitude compared with other households that did not. We discuss the implications of our findings.
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| 2 |
ID:
132595
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2014.
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| Summary/Abstract |
This paper quantifies the direct rebound effects associated with the switch from incandescent lamps (ILs) or halogen bulbs to more energy efficient compact fluorescent lamps (CFLs) or light emitting diodes (LEDs) using a large nationally representative survey of German households. The direct rebound effect is measured as the elasticity of energy demand for lighting with respect to changes in energy efficient lamps. In particular, the rebound effect is decomposed into changes in lamp luminosity and burn time. For the average bulb, the associated total direct rebound effect is estimated at about 6%. The larger part (around 60%) of this rebound effect results from increases in bulb luminosity. For the most frequent (modal) bulb switch, i.e. the replacement of the main bulb in the living or dining room, the total direct rebound effect is just below 3%, with around 60% attributable to an increase in burn time. Average and modal bulb differences suggest that the magnitude of the rebound effect may decrease with intensity of initial bulb use. The magnitude of the direct rebound and the relative contributions of changes in luminosity and burn time also differ by initial bulb type and by replacement bulb type.
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| 3 |
ID:
150048
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| Summary/Abstract |
A common strategy for reducing greenhouse gas (GHG) emissions from energy use is to increase the supply of low-carbon alternatives. However, increasing supply tends to lower energy prices, which encourages additional fuel consumption. This “fuel market rebound effect” can undermine climate change mitigation strategies, even to the point where efforts to reduce GHG emissions by increasing the supply of low-carbon fuels may actually result in increased GHG emissions. Here, we explore how policies that encourage the production of low-carbon fuels may result in increased GHG emissions because the resulting increase in energy use overwhelms the benefits of reduced carbon intensity. We describe how climate change mitigation strategies should follow a simple rule: a low-carbon fuel with a carbon intensity of X% that of a fossil fuel must displace at least X% of that fossil fuel to reduce overall GHG emissions. We apply this rule to the United States Renewable Fuel Standard (RFS2). We show that absent consideration of the fuel market rebound effect, RFS2 appears to reduce GHG emissions, but once the fuel market rebound effect is factored in, RFS2 actually increases GHG emissions when all fuel GHG intensity targets are met.
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| 4 |
ID:
171369
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| Summary/Abstract |
Gasoline consumption in emerging economies have been rising rapidly due to economic growth and increasing urbanization rate in recent years. However, the development has brought about new socio-economic and environmental challenges leading governments to adopt various policies to control the trend. Although the impacts of price changes on gasoline consumption are well-researched in the literature, studies on different policies in a specific country is limited. In this paper, we investigate the impact of three distinct policies (price reform, rationing, and fuel-efficiency) on consumer responses in Iran. We estimate price, income, and efficiency elasticities across household characteristics, income groups, and provinces using the AIDS model and the household expenditures data for the period 2005–2016. The results show that the average price elasticity is -76, however, it varies across household characteristics, time, and space. The price responses are greater in provinces neighbouring the countries with high price differentials and welfare losses of price reform are more sever for lower income families. The estimated elasticities under different policy regimes show that energy price reform has led to significantly higher elasticities, while rationing has led to decreased elasticities. The more stringent efficiency regulation and increasing imports of fuel-efficient cars have also increased elasticities.
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| 5 |
ID:
118820
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2013.
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| Summary/Abstract |
In Sweden the market share of diesel cars grew from below 10 per cent in 2005 to 62 per cent in 2011 despite a closing gap between pump prices on diesel oil and gasoline, and diesel cars being less favored than ethanol and biogas cars in terms of tax cuts and other subsidies offered to "environment cars". The most important factor behind the dieselization was probably the market entrance of a number of low-consuming models. Towards the end of the period a growing number of diesel models were able to meet the 120 g CO2 threshold applicable to "environment cars" that cannot use ethanol or biogas. This helped such models increase their share of the diesel car market from zero to 41 per cent. Dieselization appears to have had only a minor effect on annual distances driven. The higher average annual mileage of diesel cars is probably to a large extent a result of a self-selection bias. However, the Swedish diesel car fleet is young, and the direct rebound effect stemming from a lower variable driving cost may show up more clearly as the fleet gets older based on the assumption that second owners are more fuel price sensitive than first owners.
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| 6 |
ID:
171434
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| Summary/Abstract |
Technological progress is an effective way to improve electricity efficiency. Due to the existence of the rebound effect, it is of great significance to optimize the technical power saving policy by examining the rebound effect caused by different technological progress paths.Based on the panel data of electricity industry in 30 provinces of China from 1997 to 2013, this paper systematically examines the rebound effects of electricity consumption under the two sources of technological progress, namely independent innovation and technology import. Then, it discusses the impact of coal-electricity linkage policy. The empirical results are as follows: (1) without considering rebound effect, independent innovation significantly promotes electricity conservation, while the effects of technology import is not obvious; (2) when considering the rebound effect, electricity price declining driven by independent innovation is not conducive to electricity saving, while electricity price declining driven by technology import has an electricity-saving effect; (3)The coal-electricity linkage policy that began in 2004 not only reduced the rebound effect by increasing the flexibility of electricity prices to a certain extent and improved the electricity-saving effect of independent innovation, but also reduced the electricity-saving effect of technology import.
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| 7 |
ID:
118848
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| Publication |
2013.
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| Summary/Abstract |
Energy consumption and efficiency emerged as the hottest topic in the context of China's sustainable development. Energy subsidies and "rebound effect" were closely related to this topic while few combinative studies on them with a focus on China. This paper employed a co-thinking approach, focusing on how the energy subsidies reform could mitigate the rebound effect in China, and how to achieve an "economic and environmental gains" that reduced pecuniary spending, improved the distorted energy market and reduced energy consumption simultaneously. Firstly, with price-gap approach we calculated the total energy subsidies scale of China in 2007, which amounted to582.0 billion CNY; then we detected and identified rebound effect of China energy consumption with the features. Furthermore, based on China 2007 monetary input-output table and energy flow analysis, we compiled a hybrid physical energy input and monetary output model (EIMO) to simulate the mitigation effect of subsidies reform. Results showed that removing energy subsidies would decrease ultimate demand of different economy sectors and reduce the accumulatively physical consumption of coal, oil, natural gas and electricity by 17.74, 13.47, 3.64 and 15.82 million tce, respectively. Finally we discussed relevant policy issues on China's energy subsidies reform in depth.
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| 8 |
ID:
094916
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2010.
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| Summary/Abstract |
This paper reviews the empirical literature concerning the direct rebound effect in households; it briefly analyzes the main theoretical and methodological aspects, and finally estimates the magnitude of direct rebound effect for all energy services using electricity in households of Catalonia (Spain) using econometric techniques. The main results show an estimated direct rebound effect of 35% in the short term and 49% in the long term. The existence of a rebound effect reduces the effectiveness of energy efficiency policies.
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| 9 |
ID:
162927
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| Summary/Abstract |
This paper empirically examines the factors influencing consumers’ choices concerning the purchase of hybrid electric vehicles (HEVs). In addition, the paper investigates whether purchasing HEVs causes a rebound effect through which purchasers of HEVs increase their annual vehicle mileage. The results suggest that consumers who are more attentive to fuel economy may be inclined to choose HEVs. Moreover, the existence of the direct rebound effect is confirmed by the finding that the purchase of an HEV leads to an increase in annual mileage per household. Greater mileage increases future fuel cost savings from using an HEV relative to a conventional vehicle, and thus potentially leads to increased fuel cost savings that offset the extra cost of choosing an HEV. However, if the purchase of HEVs leads to a considerable increase in annual mileage, overall annual automotive CO2 emissions per household may be significantly increased by using HEVs.
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| 10 |
ID:
177485
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| Summary/Abstract |
Counted among the top three energy consuming nations globally, India is working towards reducing its carbon emissions. Energy efficiency interventions offers a low-cost opportunity to achieve its climate goals. Though the Indian government has rolled out several energy efficiency schemes, the rate of decrease in energy intensity is lower than expectations. One of the desirable areas for intervention is influencing energy usage in households, which consumes a quarter of the total energy generated in India. The study analyzes energy usage behavior in households, using a mix of primary and secondary techniques. Key findings include seasonal consumption trends correlating with climatic parameters, use of inefficient equipment and rebound effect. Policy prescriptions include peak load clipping techniques like weatherization of homes, display of real-time consumption, rationalization of tariffs and expanded criteria for selecting equipment under ‘Star Rating Scheme’. The findings may be considered to improve energy policies towards influencing consumer behavior in India.
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| 11 |
ID:
126551
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| Publication |
2013.
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| Summary/Abstract |
Household consumption requires energy to be used at all stages of the economic process, thereby directly and indirectly leading to environmental impacts across the entire production chain. The levels, structure and determinants of energy requirements of household consumption therefore constitute an important avenue of research. Incorporating the full upstream requirements into the analysis helps to avoid simplistic conclusions which would actually only imply shifts between consumption categories without taking the economy wide effects into account. This paper presents the investigation of the direct and indirect primary energy requirements of Australian households, contrasting urban, suburban and rural consumption patterns as well as inter- and intra-regional levels of inequality in energy requirements. Furthermore the spatial and socio-economic drivers of energy consumption for different categories of energy requirements are identified and quantified. Conclusions regarding the relationships between energy requirements, household characteristics, urban form and urbanization processes are drawn and the respective policy implications are explored.
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| 12 |
ID:
115125
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2012.
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| Summary/Abstract |
Energy and environmental concerns have spawned new policies aimed at reducing emissions and fuel consumption of heavy-duty vehicles (HDVs) worldwide. While such policies intend to reduce HDV energy consumption and emissions, energy savings that reduce transportation costs may lead to increased demand for HDV transportation services. Increased HDV transportation, in turn, can result in increased energy use and emissions-i.e., a direct "rebound effect." This paper provides a critical review of the literature related to the HDV rebound effect. Results of this review demonstrate that the lack of focused studies in this area combined with the variability and heterogeneity of the trucking sector limit general understanding of the HDV rebound effect. Currently, the studies that do exist often create biased or erroneous rebound effect estimates by inappropriately relying on freight elasticities or applying metrics that omit important elements of fuel consumption. Research following a more transparent and coherent approach can improve estimates of the rebound effect from policy measures to improve HDV energy efficiency.
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| 13 |
ID:
105738
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| Publication |
2011.
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| Summary/Abstract |
Since September 2009, Regulation 244/2009 of the European Commission enforces the gradual phase-out of incandescent light bulbs. As of September 2012, only energy-efficient lighting sources will be allowed for sale. Among these are halogen light bulbs, light-emitting diodes (LED), or compact fluorescent light bulbs-often referred to as energy-saving light bulbs. The Commission's justification for the phase-out of conventional light bulbs maintains that a reduction in the electricity consumed will not only lead to lower energy cost for private households and industrial consumers, but at the same time lead to a decrease in greenhouse gas emissions. This article discusses possible reasons for the slow market diffusion of energy-saving light bulbs and shows that the investment in energy-efficient light bulbs does not necessarily lead to significant cost reductions. Drawing on some illustrative examples, we demonstrate that the use of cheaper incandescent bulbs instead of energy-saving light bulbs can be economically rational in cases of rather low usage times, in which the higher initial purchasing price might only pay off after very long time spans. Furthermore, due to the coexistence with the European Emissions Trading Scheme (ETS), this regulation attains no additional emission reductions beyond those achieved by the ETS alone. We thus conclude that the general ban of incandescent light bulbs is inappropriate and should be abolished by the Commission.
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| 14 |
ID:
174953
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| Summary/Abstract |
Air conditioning (AC) is a major source of household electricity consumption in Singapore and there is evidence that the efficiency of ACs could be improved substantially. Employing 45 months of energy bills and survey data and the Fixed Effects difference-in-differences estimator, we calculated a savings of 7.8% of total energy consumption after the purchase of a more efficient AC compared to an estimated expected savings of 12.6%. This suggests a rebound or take-back of savings around 38.2%. Such a less-than-100% of theoretical savings achieved is in line with other (outside Singapore) estimates and economic/behavioural theory since after purchasing a new AC, households may (i) use a lower temperature setting or (ii) use the AC longer in order to (1) fulfil (previously) unmet demand and/or (2) respond to the effective lower costs of running the AC. Our results have implications for both energy efficiency labelling policies and for Singapore's recently implemented carbon tax.
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| 15 |
ID:
162907
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| Summary/Abstract |
Many countries have introduced various policies to improve the energy efficiency of home appliances. Japan introduced the Top Runner Program in 1998 to set efficiency standards for major home appliances. Although the energy efficiency of home appliances significantly improved after the implementation of the program, household electricity consumption has also increased. Using micro-level data from the National Survey of Family Income and Expenditure, we conduct conditional demand analysis to show how energy savings have been lost after the Top Runner Program. We find that households began spending more electricity on space cooling and food preservation after the implementation of the program. Although electricity consumption per air conditioner (AC) has decreased, the number of ACs per household has increased. Conversely, electricity consumption per refrigerator (REF) has increased because households have started buying bigger REFs. The energy savings obtained by the Top Runner Program was lost by the size and stock increases of home appliances. If a household increases the size and stock of home appliances, then it will not be possible to reduce the household electricity consumption by simply improving the energy efficiency of appliances.
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| 16 |
ID:
177343
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| Summary/Abstract |
The residential sector is a major energy consumer and requires measures for improvements in energy efficiency. However, the gains in energy efficiency do not always result in energy conservation due to the rebound effect. Therefore, there is a need for the development of methodologies to analyze energy consumption and the rebound effect in the household sector. This paper proposes an econometric approach toward the estimation of the rebound effect based on the ODEX index. The proposed approach does not require assumptions about the underlying distributions of energy inefficiency. The case of the European Union member states is considered in the paper. Specifically, we estimate the rebound effect at the aggregate, sub-period, and country levels over the period of 2000–2015. The results indicate a decline in the rebound effect over the covered period, but with substantial spatial variations. The proposed approach can be applied as a reference along with the other available approaches to ensure the robustness of the analysis. Bulgaria, the Czech Republic, Estonia, Hungary, Italy, Romania, Slovenia, and Spain faced the most serious rebound effects, even leading to backfire.
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| 17 |
ID:
175243
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| Summary/Abstract |
The EU’s Energy Efficiency Directive (EED) sets a binding target for energy-savings in EU member states. The EED further requires member states to perform ex-ante evaluations of energy efficiency policies implemented to achieve these savings. However, ex-ante evaluation of energy efficiency policies is difficult as it requires detailed modelling of end-users’ investment and energy demand behaviour. This paper details the Danish IntERACT modelling approach for ex-ante evaluation of energy efficiency policies directed at residential heating. IntERACT integrates the energy system model TIMES-DK into a computable general equilibrium framework. The paper explores the potential for meeting Denmark’s EED-target through a policy-induced increase in households’ investments in energy efficiency retrofits. The paper considers the effect of energy efficiency policies on households’ investment behaviour by applying different levels of hurdle rates on households’ investments in energy efficiency retrofits. The paper shows that reducing the hurdle rate from 25% to 4% could meet more than a third of Danish energy-saving requirements for the period 2021–2030. This result includes a direct rebound effect of 31%. Finally, the paper demonstrates that reducing the hurdle below 10% has a substantial negative impact on households’ disposable income, making such policy less viable from a policy perspective.
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| 18 |
ID:
176891
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| Summary/Abstract |
This study examines the heterogeneity of UK residential heat demand and how this diversity, along with social demographic and dwelling characteristic diversity, impacts the value case for heat pumps (HPs). The marginal abatement cost (MAC) of HPs is highly sensitive to the level of heat demand and technology assumptions. Care must be taken when interpreting the results from models with a high degree of aggregation. For similar dwellings, heat demand typically becomes lower for demographic groups that have higher levels of deprivation. For similar dwellings and demographics, households using natural gas typically have double the end-use heat demands of households with electric storage heaters. Therefore, if access to heating with similar costs to that of natural gas-fired heating is gained, the direct rebound effect suggests that the heat demands of households heated with electric storage heaters could double, particularly for households that have relatively high proportions of energy expenditure. Heating technology and building efficiency support mechanisms need to simultaneously address the wider goal of decarbonisation while reducing fuel poverty, and to incorporate measures of demand diversity into future assessment of heat policy that recognises how this rebound may oppose decarbonisation efforts but enable improvements in comfort, welfare and health standards.
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| 19 |
ID:
150673
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Policy makers and environmental agencies have echoed concerns brought forward by academics about the need to address the rebound effect for achieving absolute energy and environmental decoupling. However, such concerns have generally not been translated into tangible policy action. The reasons behind this inaction are not fully understood, and much remains unknown about the status of the rebound effect issue on the policy agenda and policy pathways available. Such knowledge gaps may hamper the development of effective policies to address this issue. In this paper, we 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. The effectiveness of the pathways is scrutinised and conclusions are offered to mitigate rebound effects. The main policy conclusions of the paper are 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. From the discussion, economy-wide cap-and-trade systems as well as energy and carbon taxes, when designed appropriately, emerge as the most effective policies in setting a ceiling for emissions and addressing energy use across the economy.
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| 20 |
ID:
163544
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| Summary/Abstract |
Transportation is the largest contributor to greenhouse gas emissions in the energy sector, which, in turn, is the largest contributor in Brazil. The way different policies mitigate CO2 emissions in the short, medium, and long-term is an ongoing research topic. Four potential policies for light vehicle fleet are investigated: (i) energy efficiency; (ii) modal change and regulatory management; (iii) renovation of the fleet; and (iv) biofuel increase. A system dynamics model is developed to estimate the delay in fleet turnover and its CO2 emissions change during the 1980–2050 period. The results indicate a rebound effect in the long-term when an objective of renovating the fleet is realized. Only if more stringent terms are considered will this policy contribute to further mitigate CO2 emissions in the long run. Results also demonstrate a longer-term perspective to energy efficiency and modal change policies, indicating the need for mandatory CO2 emission targets, unseen in the country at the present time. A biofuel increase strategy provides CO2 reduction in the short-term, and it is advisable this strategy be adopted alongside the other ones.
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