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Rethinking economy-wide rebound measures: An unbiased proposal

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  • Guerra, Ana-Isabel
  • Sancho, Ferran

Abstract

In spite of having been first introduced in the last half of the ninetieth century, the debate about the possible rebound effects from energy efficiency improvements is still an open question in the economic literature. This paper contributes to the existing research on this issue proposing an unbiased measure for economy-wide rebound effects. The novelty of this economy-wide rebound measure stems from the fact that not only actual energy savings but also potential energy savings are quantified under general equilibrium conditions. Our findings indicate that the use of engineering savings instead of general equilibrium potential savings downward biases economy-wide rebound effects and upward-biases backfire effects. The discrepancies between the traditional indicator and our proposed measure are analysed in the context of the Spanish economy.

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  • Guerra, Ana-Isabel & Sancho, Ferran, 2010. "Rethinking economy-wide rebound measures: An unbiased proposal," Energy Policy, Elsevier, vol. 38(11), pages 6684-6694, November.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:11:p:6684-6694
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    Cited by:

    1. Thomas, Brinda A. & Azevedo, Inês L., 2013. "Estimating direct and indirect rebound effects for U.S. households with input–output analysis. Part 2: Simulation," Ecological Economics, Elsevier, vol. 86(C), pages 188-198.
    2. Bernd Meyer & Mark Meyer & Martin Distelkamp, 2012. "Modeling green growth and resource efficiency: new results," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 24(2), pages 145-154, June.
    3. repec:eee:eneeco:v:66:y:2017:i:c:p:27-34 is not listed on IDEAS
    4. Chitnis, Mona & Sorrell, Steve & Druckman, Angela & Firth, Steven K. & Jackson, Tim, 2014. "Who rebounds most? Estimating direct and indirect rebound effects for different UK socioeconomic groups," Ecological Economics, Elsevier, vol. 106(C), pages 12-32.
    5. Zhang, Yue-Jun & Peng, Hua-Rong & Su, Bin, 2017. "Energy rebound effect in China's Industry: An aggregate and disaggregate analysis," Energy Economics, Elsevier, vol. 61(C), pages 199-208.
    6. repec:eee:eneeco:v:67:y:2017:i:c:p:202-212 is not listed on IDEAS
    7. 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.
    8. Pfaff, Matthias & Sartorius, Christian, 2015. "Economy-wide rebound effects for non-energetic raw materials," Ecological Economics, Elsevier, vol. 118(C), pages 132-139.
    9. Karen Turner, 2013. ""Rebound" Effects from Increased Energy Efficiency: A Time to Pause and Reflect," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    10. 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.
    11. 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).
    12. Shao, Shuai & Huang, Tao & Yang, Lili, 2014. "Using latent variable approach to estimate China׳s economy-wide energy rebound effect over 1954–2010," Energy Policy, Elsevier, vol. 72(C), pages 235-248.
    13. Thomas, Brinda A. & Azevedo, Inês L., 2013. "Estimating direct and indirect rebound effects for U.S. households with input–output analysis Part 1: Theoretical framework," Ecological Economics, Elsevier, vol. 86(C), pages 199-210.
    14. Li, Ke & Zhang, Ning & Liu, Yanchu, 2016. "The energy rebound effects across China’s industrial sectors: An output distance function approach," Applied Energy, Elsevier, pages 1165-1175.
    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. Vazhayil, Joy P. & Balasubramanian, R., 2013. "Optimization of India's power sector strategies using weight-restricted stochastic data envelopment analysis," Energy Policy, Elsevier, vol. 56(C), pages 456-465.
    17. 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.
    18. Lin, Boqiang & Du, Kerui, 2015. "Measuring energy rebound effect in the Chinese economy: An economic accounting approach," Energy Economics, Elsevier, vol. 50(C), pages 96-104.

    More about this item

    Keywords

    Rebound effect Rebound evaluation Energy efficiency;

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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