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Fuel Economy Rebound Effect for U.S. Household Vehicles

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  • David L. Greene
  • James R. Kahn
  • Robert C. Gibson

Abstract

This paper presents an econometric estimation of the "rebound effect" for household vehicle travel in the United States based on analysis of survey data collected by the Energy Information Administration (ELA) at approximately threeyear intervals over a 15-year period. The rebound effect measures the tendency to "take back" potential energy savings from fuel economy improvements as increased travel. Vehicle use models were estimated for one-, two-, three-, four-, and five-vehicle households. The results confirm recent estimates based on national or state-level data: a long-run "take back" of about 20 percent of potential energy savings. Consumer responses to changes in fuel economy or fuel price per gallon appear to be equal and opposite in sign. Recognizing the interdependencies among miles of travel, fuel economy and price is key to obtaining meaningful results.

Suggested Citation

  • David L. Greene & James R. Kahn & Robert C. Gibson, 1999. "Fuel Economy Rebound Effect for U.S. Household Vehicles," The Energy Journal, , vol. 20(3), pages 1-31, July.
    • Handle: RePEc:sae:enejou:v:20:y:1999:i:3:p:1-31
    DOI: 10.5547/ISSN0195-6574-EJ-Vol20-No3-1
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    References listed on IDEAS

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    Cited by:

    1. Tufan Özsoy, 2024. "The “energy rebound effect” within the framework of environmental sustainability," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 13(2), March.
    2. Font Vivanco, David & Freire-González, Jaume & Kemp, René & van der Voet, Ester, 2014. "The Remarkable Environmental Rebound Effect of Electric Cars: A Microeconomic Approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 48(20), pages 12063-12072.
    3. Heather Klemick & Elizabeth Kopits & Ann Wolverton, 2019. "Consumer Valuation of Fuel Economy: Findings from Recent Panel Studies," NCEE Working Paper Series 201902, National Center for Environmental Economics, U.S. Environmental Protection Agency.
    4. Manuel Frondel & Jorg Peters & Colin Vance, 2008. "Identifying the Rebound: Evidence from a German Household Panel," The Energy Journal, , vol. 29(4), pages 145-164, October.

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