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Energy efficiency and local rebound effects: Theory and experimental evidence from Rwanda

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  • Munyehirwe, Anicet
  • Peters, Jörg
  • Sievert, Maximiliane
  • Bulte, Erwin H.
  • Fiala, Nathan

Abstract

Energy efficiency is a key component of climate policy. We study micro and macro rebound effects after the introduction of energy-efficient biomass cookstoves (EEBCs). We develop a model of biomass supply and demand in rural Africa. The impact of EEBCs is empirically explored in Rwanda where we randomly varied subsidy levels for EEBCs at the village-level. Demand is price elastic, so we exploit exogenous saturation variation to study local rebound effects. While adoption of EEBCs reduces household firewood consumption, we find no meaningful local rebound effects and identify conditions under which this finding generalizes to other settings - or not.

Suggested Citation

  • Munyehirwe, Anicet & Peters, Jörg & Sievert, Maximiliane & Bulte, Erwin H. & Fiala, Nathan, 2022. "Energy efficiency and local rebound effects: Theory and experimental evidence from Rwanda," Ruhr Economic Papers 934, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:934
    DOI: 10.4419/96973094
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    More about this item

    Keywords

    Energy efficiency; macro-rebound effect; technology adoption; improved cooking;
    All these keywords.

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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