Estimating the direct rebound effect for on-road freight transportation

Energy and environmental concerns have spawned new policies aimed at reducing emissions and fuel consumption of heavy-duty vehicles (HDVs) worldwide. While such policies intend to reduce HDV energy consumption and emissions, energy savings that reduce transportation costs may lead to increased demand for HDV transportation services. Increased HDV transportation, in turn, can result in increased energy use and emissions—i.e., a direct “rebound effect.” This paper provides a critical review of the literature related to the HDV rebound effect. Results of this review demonstrate that the lack of focused studies in this area combined with the variability and heterogeneity of the trucking sector limit general understanding of the HDV rebound effect. Currently, the studies that do exist often create biased or erroneous rebound effect estimates by inappropriately relying on freight elasticities or applying metrics that omit important elements of fuel consumption. Research following a more transparent and coherent approach can improve estimates of the rebound effect from policy measures to improve HDV energy efficiency.