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Rethinking Economy-Wide Rebound Measures: An Unbiased Proposal

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  • Ana-Isabel Guerra

    ()

  • Ferran Sancho

    ()

Abstract

In spite of having been first introduced in the last half of the ninetieth century, the debate about the possible rebound effects from energy efficiency improvements is still an open question in the economic literature. This paper contributes to the existing research on this issue proposing an unbiased measure for economy-wide rebound effects. The novelty of this economy-wide rebound measure stems from the fact that not only actual energy savings but also potential energy savings are quantified under general equilibrium conditions. Our findings indicate that the use of engineering savings instead of general equilibrium potential savings downward biases economy-wide rebound effects and upward-biases backfire effects. The discrepancies between the traditional indicator and our proposed measure are analysed in the context of the Spanish economy.

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Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 814.10.

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Length: 37
Date of creation: 24 Mar 2010
Date of revision: 05 Apr 2010
Handle: RePEc:aub:autbar:814.10

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Cited by:
  1. 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.
  2. Turner, Karen, 2012. "'Rebound' effects from increased energy efficiency: a time to pause and reflect," Stirling Economics Discussion Papers 2012-15, University of Stirling, Division of Economics.
  3. Vazhayil, Joy P. & Balasubramanian, R., 2013. "Optimization of India's power sector strategies using weight-restricted stochastic data envelopment analysis," Energy Policy, Elsevier, vol. 56(C), pages 456-465.
  4. Bernd Meyer & Mark Meyer & Martin Distelkamp, 2012. "Modeling green growth and resource efficiency: new results," Mineral Economics, Springer, vol. 24(2), pages 145-154, June.

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