IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v34y2013i4p43-54.html

Re-Identifying the Rebound: What About Asymmetry?

Author

Listed:
  • Manuel Frondel
  • Colin Vance

Abstract

Rebound effects measure the behaviorally induced offset in the reduction of energy consumption following efficiency improvements. Using panel estimation methods and household travel diary data collected in Germany between 1997 and 2009, this study identifies the rebound effect in private transport by allowing for the possibility that fuel price elasticities—from which rebound effects can be derived—are asymmetric. This approach rests on empirical evidence suggesting that the response in individual travel demand to price increases is stronger than to decreases. We argue that such an asymmetric response would require referencing price elasticities derived from price decreases in order to identify the rebound effect, as it represents the response to a decrease in unit cost for car travel due to improved fuel efficiency. Failing to reject the null hypothesis of a symmetric price response, we alternatively estimate a reversible specification and obtain a rebound estimate for single-vehicle households being in the range of 46 to 70%, which is in line with an earlier German study by Frondel, Peters, and Vance (2008).

Suggested Citation

  • Manuel Frondel & Colin Vance, 2013. "Re-Identifying the Rebound: What About Asymmetry?," The Energy Journal, , vol. 34(4), pages 43-54, October.
    • Handle: RePEc:sae:enejou:v:34:y:2013:i:4:p:43-54
    DOI: 10.5547/01956574.34.4.3
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.34.4.3
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.34.4.3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Frondel, Manuel & Vance, Colin, 2010. "Fixed, random, or something in between? A variant of Hausman's specification test for panel data estimators," Economics Letters, Elsevier, vol. 107(3), pages 327-329, June.
    2. Adeyemi, Olutomi I. & Broadstock, David C. & Chitnis, Mona & Hunt, Lester C. & Judge, Guy, 2010. "Asymmetric price responses and the underlying energy demand trend: Are they substitutes or complements? Evidence from modelling OECD aggregate energy demand," Energy Economics, Elsevier, vol. 32(5), pages 1157-1164, September.
    3. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769, December.
    4. Rudolf Wolffram, 1971. "Positivistic Measures of Aggregate Supply Elasticities: Some New Approaches—Some Critical Notes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(2), pages 356-359.
    5. repec:aen:journl:2002v23-01-a02 is not listed on IDEAS
    6. Manuel Frondel & Colin Vance, 2010. "Fixed, Random, or Something in Between? – A Variant of HAUSMAN’s Specifi cation Test for Panel Data Estimators," Ruhr Economic Papers 0160, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    7. Adeyemi, Olutomi I. & Hunt, Lester C., 2007. "Modelling OECD industrial energy demand: Asymmetric price responses and energy-saving technical change," Energy Economics, Elsevier, vol. 29(4), pages 693-709, July.
    8. Severin Borenstein & A. Colin Cameron & Richard Gilbert, 1997. "Do Gasoline Prices Respond Asymmetrically to Crude Oil Price Changes?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 305-339.
    9. repec:aen:journl:1992v13-04-a10 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Frondel, Manuel, 2024. "Die hohen unbekannten CO₂-Vermeidungskosten ordnungsrechtlicher Klimaschutzmaßnahmen: Empirische Beispiele aus Deutschland und Europa," RWI Materialien 168, RWI - Leibniz-Institut für Wirtschaftsforschung.
    2. Javier D. Donna, 2021. "Measuring long‐run gasoline price elasticities in urban travel demand," RAND Journal of Economics, RAND Corporation, vol. 52(4), pages 945-994, December.
    3. Alpizar, Francisco & Carlsson, Fredrik & Lanza, Gracia, 2024. "On the perils of environmentally friendly alternatives," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    4. Fidel Gonzalez & Diya Mazumder, 2025. "Do Declining Vehicle Attributes Eliminate the Direct Rebound Effect?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 51(2), pages 198-224, April.
    5. Bigler, Patrick, 2025. "Magnitude and decomposition of the solar rebound: Evidence from Swiss households," Journal of Environmental Economics and Management, Elsevier, vol. 133(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:aen:journl:ej34-4-03 is not listed on IDEAS
    2. Frondel, Manuel & Vance, Colin, 2013. "Re-Identifying the Rebound: What About Asymmetry?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 34(4), pages 42-54.
    3. Fedoseeva, Svetlana & Zeidan, Rodrigo, 2018. "How (a)symmetric is the response of import demand to changes in its determinants? Evidence from European energy imports," Energy Economics, Elsevier, vol. 69(C), pages 379-394.
    4. Wadud, Zia, 2015. "Imperfect reversibility of air transport demand: Effects of air fare, fuel prices and price transmission," Transportation Research Part A: Policy and Practice, Elsevier, vol. 72(C), pages 16-26.
    5. Manuel Frondel & Nolan Ritter & Colin Vance, 2010. "Heterogeneity in the Rebound Eff ect – Further Evidence for Germany," Ruhr Economic Papers 0227, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    6. Sharimakin, Akinsehinwa, 2021. "Modelling asymmetric price responses of industrial energy demand with a dynamic hierarchical model," Energy Economics, Elsevier, vol. 98(C).
    7. Manuel Frondel & Colin Vance, 2011. "Re-Identifying the Rebound – What About Asymmetry?," Ruhr Economic Papers 0276, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    8. Reza Darisavi Bahmanshir & Ali Akbar Naji Meidani & Mahdi Khodaparast Mashhadi & Narges Salehnia, 2018. "Reversibility Test of Oil Demand Function of OECD Countries Importing Oil from Iran with an Emphasis on Technological and Environmental Considerations: Symmetric and Asymmetric Models," International Journal of Energy Economics and Policy, Econjournals, vol. 8(2), pages 132-139.
    9. Adeyemi, Olutomi I. & Hunt, Lester C., 2014. "Accounting for asymmetric price responses and underlying energy demand trends in OECD industrial energy demand," Energy Economics, Elsevier, vol. 45(C), pages 435-444.
    10. Wadud, Zia, 2014. "The asymmetric effects of income and fuel price on air transport demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 65(C), pages 92-102.
    11. Islam Hassouneh & Teresa Serra & José M. Gil, 2010. "Price transmission in the Spanish bovine sector: the BSE effect," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 33-42, January.
    12. Carolina Laureti, 2015. "The Debt Puzzle in Dhaka’s Slums: Do Poor People Co-hold for Liquidity Needs?," Working Papers CEB 15-021, ULB -- Universite Libre de Bruxelles.
    13. Frondel, Manuel & Ritter, Nolan & Vance, Colin, 2012. "Heterogeneity in the rebound effect: Further evidence for Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 34(2), pages 461-467.
    14. Adofo, Yaw Osei & Evans, Joanne & Hunt, Lester Charles, 2013. "How sensitive to time period sampling is the asymmetric price response specification in energy demand modelling?," Energy Economics, Elsevier, vol. 40(C), pages 90-109.
    15. Kovárník Richard & Staňková Michaela, 2023. "Assessing the Technical Efficiency of European Companies in the Automotive Sector," LOGI – Scientific Journal on Transport and Logistics, Sciendo, vol. 14(1), pages 251-262, January.
    16. Manuel Frondel & Colin Vance, 2013. "Fuel Taxes versus Efficiency Standards – An Instrumental Variable Approach," Ruhr Economic Papers 0445, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    17. Carolina Laureti, 2017. "Why do Poor People Co-hold Debt and Liquid Savings?," Working Papers CEB 17-007, ULB -- Universite Libre de Bruxelles.
    18. Zewen Hu & Yishan Wu & Jianjun Sun, 2018. "A quantitative analysis of determinants of non-citation using a panel data model," Scientometrics, Springer;Akadémiai Kiadó, vol. 116(2), pages 843-861, August.
    19. Szymon Wlazlowski & Monica Giulietti & Jane Binner & Costas Milas, 2008. "Smooth Transition Models in Price Transmission," Working Paper series 04_08, Rimini Centre for Economic Analysis.
    20. Mohammad J Alam & Raghbendra Jha, 2016. "Asymmetric threshold vertical price transmission in wheat and flour markets in Dhaka (Bangladesh): seemingly unrelated regression analysis," ASARC Working Papers 2016-03, The Australian National University, Australia South Asia Research Centre.
    21. Bertoldi, Paolo & Mosconi, Rocco, 2020. "Do energy efficiency policies save energy? A new approach based on energy policy indicators (in the EU Member States)," Energy Policy, Elsevier, vol. 139(C).

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:enejou:v:34:y:2013:i:4:p:43-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.