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Heterogeneity in the Rebound Effect: Evidence from Efficient Lighting Subsidies

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  • Ensieh Shojaeddini

    (USGS)

  • Ben Gilbert

    (Colorado School of Mines)

Abstract

This paper quantifies heterogeneity in rebound effects from policy-induced energy efficiency improvements by income and home size. We do so in a relatively understudied context: residential lighting. This context allows us to separately estimate effects for energy services (lighting hours) and electricity consumption. We identify the effect of household-level subsidy uptake using instrumental variables for program awareness. We find that rebound effects are larger for low-income households and those in smaller homes. We also show that the rebound effect is not large enough to “backfire” and all income and home-size subsamples exhibit net energy savings.

Suggested Citation

  • Ensieh Shojaeddini & Ben Gilbert, 2023. "Heterogeneity in the Rebound Effect: Evidence from Efficient Lighting Subsidies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(1), pages 173-217, January.
    • Handle: RePEc:kap:enreec:v:84:y:2023:i:1:d:10.1007_s10640-022-00721-x
    DOI: 10.1007/s10640-022-00721-x
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    More about this item

    Keywords

    Rebound effect; Heterogeneity; Energy efficiency policy;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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