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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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Bibliographic Info

Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 456.

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Date of creation: May 2010
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Handle: RePEc:bge:wpaper:456

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Keywords: Rebound effect; Rebound evaluation; Energy efficiency;

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Cited by:
  1. Patrizio Lecca & Peter McGregor & J. Kim Swales & Karen Turner, 2013. "The added value from a general equilibrium analyses of increased efficiency in household energy use," Working Papers, University of Strathclyde Business School, Department of Economics 1308, University of Strathclyde Business School, Department of Economics.
  2. Vazhayil, Joy P. & Balasubramanian, R., 2013. "Optimization of India's power sector strategies using weight-restricted stochastic data envelopment analysis," Energy Policy, Elsevier, Elsevier, vol. 56(C), pages 456-465.
  3. Turner, Karen, 2012. "'Rebound' effects from increased energy efficiency: a time to pause and reflect," Stirling Economics Discussion Papers, University of Stirling, Division of Economics 2012-15, University of Stirling, Division of Economics.
  4. Bernd Meyer & Mark Meyer & Martin Distelkamp, 2012. "Modeling green growth and resource efficiency: new results," Mineral Economics, Springer, Springer, vol. 24(2), pages 145-154, June.

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