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Rebound, directed technological change, and aggregate demand for energy

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  • Hart, Rob

Abstract

We analyse the long-run role of energy in aggregate production. The factor share of energy has been remarkably constant, despite the relative decline in the price of energy. We analyse possible explanations for this observation, ruling out the idea that endogenous directed technological change has led to a failure of energy-augmenting technology to keep pace with labour-augmenting technology. Instead we propose a model in which a combination of income and substitution effects has driven both shifts in consumption patterns towards existing energy-intensive goods and the emergence of new such goods.

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  • Hart, Rob, 2018. "Rebound, directed technological change, and aggregate demand for energy," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 218-234.
    • Handle: RePEc:eee:jeeman:v:89:y:2018:i:c:p:218-234
    DOI: 10.1016/j.jeem.2018.03.002
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    Cited by:

    1. Stern, David I., 2020. "How large is the economy-wide rebound effect?," Energy Policy, Elsevier, vol. 147(C).
    2. Bruns, Stephan B. & Moneta, Alessio & Stern, David I., 2021. "Estimating the economy-wide rebound effect using empirically identified structural vector autoregressions," Energy Economics, Elsevier, vol. 97(C).
    3. Blackburn, Christopher J. & Moreno-Cruz, Juan, 2021. "Energy efficiency in general equilibrium with input–output linkages," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    4. Polina Ustyuzhanina, 2022. "Decomposition of air pollution emissions from Swedish manufacturing," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(2), pages 195-223, April.
    5. Saunders, Harry D. & Roy, Joyashree & Azevedo, Inês M.L. & Chakravarty, Debalina & Dasgupta, Shyamasree & De La Rue Du Can, Stephane & Druckman, Angela & Fouquet, Roger & Grubb, Michael & Lin, Boqiang, 2021. "Energy efficiency: what has research delivered in the last 40 years?," LSE Research Online Documents on Economics 114344, London School of Economics and Political Science, LSE Library.
    6. Lemoine, Derek, 2020. "General equilibrium rebound from energy efficiency innovation," European Economic Review, Elsevier, vol. 125(C).
    7. Casey, Gregory, "undated". "Energy Efficiency and Directed Technical Change: Implications for Climate Change Mitigation," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259959, Agricultural and Applied Economics Association.
    8. Dierk Herzer, 2024. "The impact of domestic R&D and North–South R&D spillovers on energy intensity in developing countries," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-31, April.
    9. 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.
    10. Hart, Rob, 2020. "Growth, pollution, policy!," European Economic Review, Elsevier, vol. 126(C).

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    More about this item

    Keywords

    Energy; Technology; Directed technological change; Structural change; Rebound;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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