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Heterogeneous direct rebound effect: Theory and evidence from the Energy Star program

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  • Sun, Bixuan

Abstract

Improvements in energy efficiency change the relative prices of energy services and thus the consumption of those services. This so-called direct rebound effect changes the energy savings that improved efficiency might otherwise achieve. This paper develops a theoretical model that shows the sign of the direct rebound effect depends on the type of energy service. Empirical evidence from the 2009 Residential Energy Consumption Survey data shows a negative direct rebound effect for Energy Star dishwashers and a potentially positive direct rebound effect for Energy Star air conditioners. Negative rebound effects amplify energy savings, while positive rebound effects offset energy savings from using more efficient technologies.

Suggested Citation

  • Sun, Bixuan, 2018. "Heterogeneous direct rebound effect: Theory and evidence from the Energy Star program," Energy Economics, Elsevier, vol. 69(C), pages 335-349.
    • Handle: RePEc:eee:eneeco:v:69:y:2018:i:c:p:335-349
    DOI: 10.1016/j.eneco.2017.11.025
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    Cited by:

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    3. Miao, Zhuang & Chen, Xiaodong, 2022. "Combining parametric and non-parametric approach, variable & source -specific productivity changes and rebound effect of energy & environment," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    4. Lin, Boqiang & Zhu, Penghu, 2021. "Measurement of the direct rebound effect of residential electricity consumption: An empirical study based on the China family panel studies," Applied Energy, Elsevier, vol. 301(C).
    5. Peter M. Schwarz & Craig A. Depken II & Michael W. Herron & Benjamin J. Correlf, 2021. "ENERGY STAR Appliance Market Shares: Do They Respond to Electricity Prices, and Does It Matter?," The Energy Journal, , vol. 42(4), pages 253-266, July.
    6. Qiu, Yueming & Kahn, Matthew E., 2019. "Impact of voluntary green certification on building energy performance," Energy Economics, Elsevier, vol. 80(C), pages 461-475.
    7. Shao, Shuai & Guo, Longfei & Yu, Mingliang & Yang, Lili & Guan, Dabo, 2019. "Does the rebound effect matter in energy import-dependent mega-cities? Evidence from Shanghai (China)," Applied Energy, Elsevier, vol. 241(C), pages 212-228.
    8. Khanna, Tarun M. & Danilenko, Diana & Tomberg, Lukas & Hansteen, Sven & Andor, Mark Andreas & Lohmann, Paul & Minx, Jan C., 2025. "Meta-analysis on the efficacy of behavioral, information and economic interventions in increasing energy-efficiency adoption among households," Ruhr Economic Papers 1141, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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    Keywords

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    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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