IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Rebound and disinvestment effects in refined oil consumption and supply resulting from an increase in energy efficiency in the Scottish commercial transport sector

  • Anson, Sam
  • Turner, Karen

In this paper, we use an energy-economy-environment computable general equilibrium (CGE) model of the Scottish economy to examine the impacts of an exogenous increase in energy augmenting technological progress in the domestic commercial Transport sector on the supply and use of energy. We focus our analysis on Scottish refined oil, as the main type of energy input used in commercial transport activity. We find that a 5% increase in energy efficiency in the commercial Transport sector leads to rebound effects in the use of oil-based energy commodities in all time periods, in the target sector and at the economy-wide level. However, our results also suggest that such an efficiency improvement may cause a contraction in capacity in the Scottish refined oil supply sector. This 'disinvestment effect' acts as a constraint on the size of rebound effects. However, the magnitude of rebound effects and presence of the disinvestment effect in the simulations conducted here are sensitive to the specification of key elasticities of substitution in the nested production function for the target sector, particularly the substitutability of energy for non-energy intermediate inputs to production.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/B6V2W-4WCK0D1-3/2/33bd93968373a4400ef5bdffa863b8db
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 37 (2009)
Issue (Month): 9 (September)
Pages: 3608-3620

as
in new window

Handle: RePEc:eee:enepol:v:37:y:2009:i:9:p:3608-3620
Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Saunders, Harry D., 2000. "Does predicted rebound depend on distinguishing between energy and energy services?," Energy Policy, Elsevier, vol. 28(6-7), pages 497-500, June.
  2. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
  3. Harty D. Saunders, 1992. "The Khazzoom-Brookes Postulate and Neoclassical Growth," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 131-148.
  4. Dermot Gately, 1990. "The U.S. Demand for Highway Travel and Motor Fuel," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 59-74.
  5. Turner, Karen, 2008. "A computable general equilibrium analysis of the relative price sensitivity required to induce rebound effects in response to an improvement in energy efficiency in the UK economy," SIRE Discussion Papers 2008-20, Scottish Institute for Research in Economics (SIRE).
  6. Brookes, Len, 1990. "The greenhouse effect: the fallacies in the energy efficiency solution," Energy Policy, Elsevier, vol. 18(2), pages 199-201, March.
  7. Hanley, Nick D. & McGregor, Peter G. & Swales, J. Kim & Turner, Karen, 2006. "The impact of a stimulus to energy efficiency on the economy and the environment: A regional computable general equilibrium analysis," Renewable Energy, Elsevier, vol. 31(2), pages 161-171.
  8. Turner, Karen, 2009. "Negative rebound and disinvestment effects in response to an improvement in energy efficiency in the UK economy," SIRE Discussion Papers 2009-12, Scottish Institute for Research in Economics (SIRE).
  9. Allan, Grant & Hanley, Nick & McGregor, Peter & Swales, Kim & Turner, Karen, 2007. "The impact of increased efficiency in the industrial use of energy: A computable general equilibrium analysis for the United Kingdom," Energy Economics, Elsevier, vol. 29(4), pages 779-798, July.
  10. Keppler, Jan Horst & Birol, Fatih, 2000. "Prices, technology development and the rebound effect," Economics Papers from University Paris Dauphine 123456789/10972, Paris Dauphine University.
  11. Bergman, Lars, 1990. "Energy and environmental constraints on growth: A CGE modeling approach," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 671-691.
  12. Saunders, Harry D., 2000. "A view from the macro side: rebound, backfire, and Khazzoom-Brookes," Energy Policy, Elsevier, vol. 28(6-7), pages 439-449, June.
  13. Karen Turner, 2008. "A Computable General Equilibrium Analysis of the Relative Price Sensitivity Required to Induce Rebound Effects in Response to an Improvement in Energy Efficiency in the UK Economy," Working Papers 0807, University of Strathclyde Business School, Department of Economics.
  14. Grepperud, Sverre & Rasmussen, Ingeborg, 2004. "A general equilibrium assessment of rebound effects," Energy Economics, Elsevier, vol. 26(2), pages 261-282, March.
  15. Kemfert, Claudia, 1998. "Estimated substitution elasticities of a nested CES production function approach for Germany," Energy Economics, Elsevier, vol. 20(3), pages 249-264, June.
  16. Dufournaud, Christian M. & Quinn, John T. & Harrington, Joseph J., 1994. "An Applied General Equilibrium (AGE) analysis of a policy designed to reduce the household consumption of wood in the Sudan," Resource and Energy Economics, Elsevier, vol. 16(1), pages 67-90, March.
  17. Wei, Taoyuan, 2007. "Impact of energy efficiency gains on output and energy use with Cobb-Douglas production function," Energy Policy, Elsevier, vol. 35(4), pages 2023-2030, April.
  18. J. Daniel Khazzoom, 1980. "Economic Implications of Mandated Efficiency in Standards for Household Appliances," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 21-40.
  19. Saunders, Harry D., 2008. "Fuel conserving (and using) production functions," Energy Economics, Elsevier, vol. 30(5), pages 2184-2235, September.
  20. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, March.
  21. Solveig Glomsrød & Wei Taoyuan, 2003. "Coal cleaning: A viable strategy for reduced carbon emissions and improved environment in China?," Discussion Papers 356, Research Department of Statistics Norway.
  22. Turner, Karen, 2009. "Negative rebound and disinvestment effects in response to an improvement in energy efficiency in the UK economy," Energy Economics, Elsevier, vol. 31(5), pages 648-666, September.
  23. Hanley, Nick & McGregor, Peter G. & Swales, J. Kim & Turner, Karen, 2009. "Do increases in energy efficiency improve environmental quality and sustainability?," Ecological Economics, Elsevier, vol. 68(3), pages 692-709, January.
  24. Bergman, Lars, 1988. "Energy Policy Modeling: A survey of general equilibrium approaches," Journal of Policy Modeling, Elsevier, vol. 10(3), pages 377-399.
  25. Semboja, Haji Hatibu Haji, 1994. "The effects of an increase in energy efficiency on the Kenya economy," Energy Policy, Elsevier, vol. 22(3), pages 217-225, March.
  26. Herring, Horace, 1999. "Does energy efficiency save energy? The debate and its consequences," Applied Energy, Elsevier, vol. 63(3), pages 209-226, July.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:37:y:2009:i:9:p:3608-3620. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.