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Measurement of the Rebound Effect on Urban Household Energy Consumption Savings

Author

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  • Eka Sudarmaji

    (Fakultas Ekonomi and Bisnis, University of Pancasila. Jalan Srengseng Sawah, Pasar Minggu Jakarta 12640, Indonesia)

  • Sri Ambarwati

    (Fakultas Ekonomi and Bisnis, University of Pancasila. Jalan Srengseng Sawah, Pasar Minggu Jakarta 12640, Indonesia)

  • Mira Munira

    (Fakultas Ekonomi and Bisnis, University of Pancasila. Jalan Srengseng Sawah, Pasar Minggu Jakarta 12640, Indonesia)

Abstract

This research investigated consumer behavior patterns on energy conservation and energy efficiency. We investigated the factors that influence the rebound effect based on common characteristics and Socio-economic household characteristics in urban communities. This paper also explored the conservation of electricity through the idea of "nudge." The authors used the word "encouragement" in the chosen architectural program, designed to reduce household electricity consumption so that the rebound effect did not occur in household consumption. By utilizing the 'social norms and curtailment,' households given a "nudge" can save more on their electricity consumption costs. The condition of "nudge" that we included was through information on the costs incurred by households, 'social norms and curtailment,' and energy efficiency through replacing conventional lamps with energy-efficient lamps. The research took place in urban areas in the Bantul, Jogjakarta, between December 2021 and April 2022. Sixty-two respondents divide into two groups of households, i.e., observe households (self-selected) and control households (randomly selected). Both observe and control households must have an active electricity account for at least one year and have owned a house between 50 and 200 square meters. The model used a t-paired sample through the "Non-Equivalent Groups Design" (NEGD) framework for the two comparisons. The research found that 'social norms and curtailment' can reduce household electricity consumption, has cost savings over electricity consumption on average to 16.3049% for three months, and no rebound effect on savings happened.

Suggested Citation

  • Eka Sudarmaji & Sri Ambarwati & Mira Munira, 2022. "Measurement of the Rebound Effect on Urban Household Energy Consumption Savings," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 88-100, September.
  • Handle: RePEc:eco:journ2:2022-05-11
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    References listed on IDEAS

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    Cited by:

    1. Lia Marchi & Jacopo Gaspari, 2023. "Energy Conservation at Home: A Critical Review on the Role of End-User Behavior," Energies, MDPI, vol. 16(22), pages 1-22, November.

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    More about this item

    Keywords

    Rebound Effect; Households Energy Efficiency; Nudge; Social Norms; Curtailments.;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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