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The Long Run Demand for Lighting:Elasticities and Rebound Effects in Different Phases of Economic Development

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  • Roger Fouquet
  • Peter J.G. Pearson

Abstract

The provision of artificial light was revolutionised by a series of discontinuous innovations in lighting appliances, fuels, infrastructures and institutions during the nineteenth and twentieth centuries. In Britain, the real price of lighting fell dramatically (3,000-fold between 1800 and 2000) and quality rose. Along with rises in real income and population, these developments meant that total consumption of lighting was 40,000 times greater by2000 than in 1800. The paper presents estimates of the income and price elasticities of demand for lighting services over the past three hundred years, and explores how they evolved. Income and price elasticities increased dramatically (to 3.5 and -1.7, respectively) between the 1840s and the 1890s and fell rapidly in the twentieth century. Even in the twentieth century and at the beginning of the twenty-first century, rebound effects in the lighting market still appear to be potentially important. This paper provides a first case study of the long run effects of socio-economic change and technological innovation on the consumption of energy services in the UK. We suggest that understanding the evolution of the demand for energy services and the factors that influence it contributes to a better understanding of future energy uses and associated greenhouse gas emissions.

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Bibliographic Info

Article provided by International Association for Energy Economics in its journal Economics of Energy & Environmental Policy.

Volume (Year): Volume 1 (2012)
Issue (Month): Number 1 ()
Pages:

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Handle: RePEc:aen:eeepjl:1_1_08

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References

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Citations

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Cited by:
  1. Mills, Bradford & Schleich, Joachim, 2013. "Household transitions to energy efficient lighting," Working Papers "Sustainability and Innovation" S5/2013, Fraunhofer Institute for Systems and Innovation Research (ISI).
  2. Meza, Carlos Germán & Seger Mercedes, Sonia & Sauer, Ildo Luís, 2014. "Nicaragua's 2013 residential lighting program: Prospective assessment," Energy Policy, Elsevier, vol. 67(C), pages 522-530.
  3. Roger Fouquet, 2013. "Long Run Demand for Energy Services: the Role of Economic and Technological Development," Working Papers 2013-03, BC3.
  4. Lecca, Patrizio & McGregor, Peter G. & Swales, J. Kim & Turner, Karen, 2014. "The added value from a general equilibrium analysis of increased efficiency in household energy use," Ecological Economics, Elsevier, vol. 100(C), pages 51-62.
  5. Cameron Hepburn & Alex Bowen, 2012. "Prosperity with growth: Economic growth, climate change and environmental limits," Grantham Research Institute on Climate Change and the Environment Working Papers 93, Grantham Research Institute on Climate Change and the Environment.
  6. Fouquet, Roger, 2012. "The demand for environmental quality in driving transitions to low-polluting energy sources," Energy Policy, Elsevier, vol. 50(C), pages 138-149.
  7. Roger Fouquet, 2012. "Trends in Income and Price Elasticities of Transport Demand (1850-2010)," Working Papers 2012-01, BC3.
  8. repec:hal:gemwpa:hal-00991732 is not listed on IDEAS
  9. Roger Fouquet, 2012. "Economics of Energy and Climate Change: Origins, Developments and Growth," Working Papers 2012-08, BC3.
  10. Chun, Natalie & Jiang, Yi, 2013. "How households in Pakistan take on energy efficient lighting technology," Energy Economics, Elsevier, vol. 40(C), pages 277-284.
  11. Dan Bogart, 2013. "The Transportation Revolution in Industrializing Britain: A Survey," Working Papers 121306, University of California-Irvine, Department of Economics.
  12. Severin Borenstein, 2013. "A Microeconomic Framework for Evaluating Energy Efficiency Rebound And Some Implications," NBER Working Papers 19044, National Bureau of Economic Research, Inc.
  13. Michel Damian, 2012. "Repenser l'économie du changement climatique," Post-Print halshs-00709929, HAL.
  14. Schleich, Joachim & Mills, Bradford & Dütschke, Elisabeth, 2014. "A brighter future? Quantifying the rebound effect in energy efficient lighting," Working Papers "Sustainability and Innovation" S3/2014, Fraunhofer Institute for Systems and Innovation Research (ISI).
  15. Lester C. Hunt & David L Ryan, 2014. "Economic Modelling of Energy Services: Rectifying Misspecified Energy Demand Functions," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 147, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.

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