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The added value from a general equilibrium analysis of increased efficiency in household energy use

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  • Lecca, Patrizio
  • McGregor, Peter G.
  • Swales, J. Kim
  • Turner, Karen

Abstract

This paper investigates the economic impact of a 5% improvement in the UK household energy efficiency, focussing specifically on total energy rebound effects. The impact is measured through simulations using models that have increasing degrees of endogeneity but are calibrated on a common data set, moving from a basic partial equilibrium approach to a fully specified general equilibrium treatment. The size of the rebound effect is shown to depend on changes in household income, aggregate economic activity and relative prices that can only be captured through a general equilibrium model.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:ecolec:v:100:y:2014:i:c:p:51-62
    DOI: 10.1016/j.ecolecon.2014.01.008
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    Cited by:

    1. Saunders, Harry D., 2014. "Toward a neoclassical theory of sustainable consumption: Eight golden age propositions," Ecological Economics, Elsevier, vol. 105(C), pages 220-232.
    2. Fan, Jin & Li, Jun & Wu, Yanrui & Wang, Shanyong & Zhao, Dingtao, 2016. "The effects of allowance price on energy demand under a personal carbon trading scheme," Applied Energy, Elsevier, vol. 170(C), pages 242-249.
    3. Lu, Yingying & Liu, Yu & Zhou, Meifang, 2017. "Rebound effect of improved energy efficiency for different energy types: A general equilibrium analysis for China," Energy Economics, Elsevier, vol. 62(C), pages 248-256.
    4. Koesler, Simon, 2013. "Catching the rebound: Economy-wide implications of an efficiency shock in the provision of transport services by households," ZEW Discussion Papers 13-082, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Lecca, Patrizio & McGregor, Peter G. & Swales, Kim J. & Tamba, Marie, 2017. "The Importance of Learning for Achieving the UK's Targets for Offshore Wind," Ecological Economics, Elsevier, vol. 135(C), pages 259-268.
    6. Stapleton, Lee & Sorrell, Steve & Schwanen, Tim, 2016. "Estimating direct rebound effects for personal automotive travel in Great Britain," Energy Economics, Elsevier, vol. 54(C), pages 313-325.
    7. Koesler, Simon & Swales, Kim & Turner, Karen, 2016. "International spillover and rebound effects from increased energy efficiency in Germany," Energy Economics, Elsevier, vol. 54(C), pages 444-452.
    8. 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.
    9. repec:eee:ecolec:v:146:y:2018:i:c:p:136-147 is not listed on IDEAS
    10. Gioele Figus & J Kim Swales & Karen Turner, 2017. "Can a reduction in fuel use result from an endogenous technical progress in motor vehicles? A partial and general equilibrium analysis," Working Papers 1705, University of Strathclyde Business School, Department of Economics.
    11. repec:spr:sjecst:v:153:y:2017:i:4:d:10.1007_bf03399511 is not listed on IDEAS
    12. repec:eee:enepol:v:108:y:2017:i:c:p:715-730 is not listed on IDEAS
    13. Allan, Grant & Eromenko, Igor & Gilmartin, Michelle & Kockar, Ivana & McGregor, Peter, 2015. "The economics of distributed energy generation: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 543-556.
    14. repec:eee:enepol:v:111:y:2017:i:c:p:157-165 is not listed on IDEAS
    15. Gioele Figus & Patrizio Lecca & Peter McGregor & Karen Turner, 2017. "Energy efficiency as an instrument of regional development policy? Trading-off the benefits of an economic stimulus and energy rebound effects," Working Papers 1702, University of Strathclyde Business School, Department of Economics.
    16. Gioele Figus & Patrizio Lecca & Karen Turner & Peter McGregor, 2016. "Increased energy efficiency in Scottish households: trading-off economic benefits and energy rebound effects?," EcoMod2016 9454, EcoMod.
    17. Koesler, Simon & Swales, Kim & Turner, Karen, 2014. "Beyond national economy-wide rebound effects: An applied general equilibrium analysis incorporating international spillover effects," ZEW Discussion Papers 14-025, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    18. Turner, Karen & Katris, Antonios, 2017. "A ‘Carbon Saving Multiplier’ as an alternative to rebound in considering reduced energy supply chain requirements from energy efficiency?," Energy Policy, Elsevier, vol. 103(C), pages 249-257.
    19. repec:spr:masfgc:v:22:y:2017:i:6:d:10.1007_s11027-016-9710-3 is not listed on IDEAS

    More about this item

    Keywords

    Energy efficiency; Indirect rebound effects; Economy-wide rebound effects; Household energy consumption; CGE models;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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