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Turn it up and open the window: On the rebound effects in residential heating

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  • Cecile Hediger
  • Mehdi Farsi
  • Sylvain Weber

Abstract

This paper investigates how households respond to efficiency improvement of their heating system. Micro-level rebound effects are estimated using a survey with an innovative choice experiment based on the stated preference approach. The experiment design allows to identify the direct and indirect rebound effects as well as their possible trade-offs at the household level. A series of easy discrete choices have been designed to prime respondents and make them think about potential actions impacting their heating service demand. Answers to these discrete choices are moreover used to cross-validate the quantitative results. Overall, we find relatively low direct rebound effects. However, after considering indirect rebound effects calculated as embodied primary energy, we estimate a total rebound of more than one third. The econometric analysis points to substantial variation across individuals that is only partly explained by observed characteristics. The results are consistent with the conjunction that heating is a basic need that calls for little rebound in high-income groups.

Suggested Citation

  • Cecile Hediger & Mehdi Farsi & Sylvain Weber, 2016. "Turn it up and open the window: On the rebound effects in residential heating," IRENE Working Papers 16-11, IRENE Institute of Economic Research.
    • Handle: RePEc:irn:wpaper:16-11
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    Cited by:

    1. Simon Mathex & Lisette Ibanez & Raphaële Préget, 2023. "Distinguishing economic and moral compensation in the rebound effect: A theoretical and experimental approach," Post-Print hal-04217073, HAL.
    2. Cécile Hediger, 2022. "Rebound effects in residential heating: How much does an extra degree matter?," IRENE Working Papers 22-05, IRENE Institute of Economic Research.
    3. Baumgartner, Anne & Krysiak, Frank C. & Kuhlmey, Florian, 2022. "Sufficiency without regret," Ecological Economics, Elsevier, vol. 200(C).
    4. Robert Mai & Stefan Hoffmann & Ingo Balderjahn, 2021. "When drivers become inhibitors of organic consumption: the need for a multistage view," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1151-1174, November.
    5. Ott, Laurent & Weber, Sylvain, 2022. "How effective is carbon taxation on residential heating demand? A household-level analysis," Energy Policy, Elsevier, vol. 160(C).
    6. Kong, Li & Hu, Guangwen & Mu, Xianzhong & Li, Guohao & Zhang, Zheng, 2023. "The energy rebound effect in households: Evidence from urban and rural areas in Beijing," Applied Energy, Elsevier, vol. 343(C).
    7. Cansino, José M. & Román-Collado, Rocío & Merchán, José, 2019. "Do Spanish energy efficiency actions trigger JEVON’S paradox?," Energy, Elsevier, vol. 181(C), pages 760-770.
    8. Spangenberg, Joachim H. & Lorek, Sylvia, 2019. "Sufficiency and consumer behaviour: From theory to policy," Energy Policy, Elsevier, vol. 129(C), pages 1070-1079.
    9. Jia, Zhijie & Lin, Boqiang, 2022. "Is the rebound effect useless? A case study on the technological progress of the power industry," Energy, Elsevier, vol. 248(C).
    10. Cansino, José M. & Ordóñez, Manuel & Prieto, Manuela, 2022. "Decomposition and measurement of the rebound effect: The case of energy efficiency improvements in Spain," Applied Energy, Elsevier, vol. 306(PA).

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    More about this item

    Keywords

    Rebound effects; energy efficiency; residential heating.;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

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