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Estimating the Rebound Effect of Electricity Consumption in Iran: Threshold Level Approach

Author

Listed:
  • Khoshkalam Khosroshahi, Musa

    (Assistance Professor of Economics, Alzahra University)

  • Mahdavi, Rohollah

    (Ph.D. in Economics, Allameh Tabatabaei University)

Abstract

The literature on energy economics suggests a rebound effect of improving energy efficiency. Given the fact that existing rebound effect causes the electricity saving (due to the improvement of the efficiency of consumer electric appliances in the residential sector) be less than expected, the present paper based on the time series data of 1357-1395, uses linear and threshold models to estimate the direct rebound effect of residential electricity consumption in different scenarios. The results of linear model show that the direct rebound effect of residential electricity consumption in Iran during the period 1357-1395 is on average 81%. The results of the other model (threshold model), taking into account the two variables of Gross domestic product (GDP) per capita and cooling degree days (CDD) as threshold variables, show that decrease in GDP per capita and increase in cooling degree days will increase the direct rebound effect of residential electricity consumption

Suggested Citation

  • Khoshkalam Khosroshahi, Musa & Mahdavi, Rohollah, 2019. "Estimating the Rebound Effect of Electricity Consumption in Iran: Threshold Level Approach," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 5(4), pages 173-196, February.
    • Handle: RePEc:ris:qjatoe:0132
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    More about this item

    Keywords

    Energy Economics; Electricity Consumption; Rebound Effect; Threshold Model;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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