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Energy Efficiency Policies and the Jevons Paradox

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  • Jaume Freire-González

    (ENT Environment and Management, Spain)

  • Ignasi Puig-Ventosa

    (ENT Environment and Management, Spain)

Abstract

Energy and climate change policies are often strongly based on achieving energy efficiency targets. These policies are supposed to reduce energy consumption and consequently, associated pollutant emissions, but the Jevons paradox may pose a question mark on this assumption. Rebound effects produced by reduction in costs of energy services have not been generally taken into account in policy making (there is only one known exception). Although there is no scientific consensus about its magnitude, there is consensus about its existence and in acknowledging the harmful effects it has on achieving energy or climate targets. It is necessary to address the rebound effect through behavioral, legal and economic instruments. This paper analyzes the main available policies to minimize the rebound effect in households with special emphasis on economic instruments and, particularly, on energy taxation.

Suggested Citation

  • Jaume Freire-González & Ignasi Puig-Ventosa, 2015. "Energy Efficiency Policies and the Jevons Paradox," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 69-79.
  • Handle: RePEc:eco:journ2:2015-01-06
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    References listed on IDEAS

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    Cited by:

    1. Freire-González, Jaume, 2017. "Evidence of direct and indirect rebound effect in households in EU-27 countries," Energy Policy, Elsevier, vol. 102(C), pages 270-276.
    2. Freire-González, Jaume & Font Vivanco, David & Puig-Ventosa, Ignasi, 2017. "Economic structure and energy savings from energy efficiency in households," Ecological Economics, Elsevier, vol. 131(C), pages 12-20.
    3. Sean Williams & Michael Short & Tracey Crosbie & Maryam Shadman-Pajouh, 2020. "A Decentralized Informatics, Optimization, and Control Framework for Evolving Demand Response Services," Energies, MDPI, Open Access Journal, vol. 13(16), pages 1-30, August.
    4. Kulmer, Veronika & Seebauer, Sebastian, 2019. "How robust are estimates of the rebound effect of energy efficiency improvements? A sensitivity analysis of consumer heterogeneity and elasticities," Energy Policy, Elsevier, vol. 132(C), pages 1-14.
    5. Dmitry Burakov, 2015. "Energy Effi ciency in Rent Seeking Economies: Is Credit Capable of Breaking the Energy Curse?," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 677-685.
    6. Aldona Standar & Agnieszka Kozera & Łukasz Satoła, 2021. "The Importance of Local Investments Co-Financed by the European Union in the Field of Renewable Energy Sources in Rural Areas of Poland," Energies, MDPI, Open Access Journal, vol. 14(2), pages 1-23, January.
    7. Vélez-Henao, Johan-Andrés & García-Mazo, Claudia-Maria & Freire-González, Jaume & Vivanco, David Font, 2020. "Environmental rebound effect of energy efficiency improvements in Colombian households," Energy Policy, Elsevier, vol. 145(C).
    8. Chinnasamy Palanichamy & Palanichamy Naveen & Wong Kiing Ing & Michael Kobina Danquah & Jayaraman Indumath, 2015. "Energy Efficiency Enhancement of Fossil-Fuelled Power Systems," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 765-771.
    9. Freire-González, Jaume, 2017. "A new way to estimate the direct and indirect rebound effect and other rebound indicators," Energy, Elsevier, vol. 128(C), pages 394-402.
    10. Kulmer, Veronika & Seebauer, Sebastian, 2017. "How Robust are Estimates of the Rebound Effect of Energy Efficiency Improvements? A Sensitivity Analysis of Consumer Heterogeneity and Elasticities," FCN Working Papers 16/2017, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).

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    More about this item

    Keywords

    Rebound effect; Energy efficiency; Environmental taxation;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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