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Urban Residential Energy Demand and Rebound Effect in China: A Stochastic Energy Demand Frontier Approach

Author

Listed:
  • Kerui Du
  • Shuai Shao
  • Zheming Yan

Abstract

The energy rebound effect is a potential threat to energy-saving targets based on energy efficiency improvements. This paper employs a stochastic energy demand frontier model to analyze the energy demand and rebound effect in China’s urban residential sector. Using a panel data set of 30 Chinese provincial-level regions over the period 2001-2014, for the first time, we investigate the degrees and determinants of China’s urban residential energy demand and energy rebound effect.The results show that residents’ income level, energy price, temperature deviation, population scale, household size, and district heating system are significant influencing factors of residential energy consumption. Regarding the energy rebound effect, we find that energy price is negatively correlated with the rebound effect, and an inverted U-shaped relationship between residents’ income level and rebound-effect size exists. The magnitude of the rebound effect varies across regions, with an average of 65.4%. The main policy implication generated by this study is that it should be in urgent need of energy pricing reform to mitigate the rebound effect in China.

Suggested Citation

  • Kerui Du & Shuai Shao & Zheming Yan, 2021. "Urban Residential Energy Demand and Rebound Effect in China: A Stochastic Energy Demand Frontier Approach," The Energy Journal, , vol. 42(4), pages 175-194, July.
    • Handle: RePEc:sae:enejou:v:42:y:2021:i:4:p:175-194
    DOI: 10.5547/01956574.42.4.kdu
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    References listed on IDEAS

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    Cited by:

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    3. 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.
    4. Emrah Kocak & Mohammed Alnour, 2025. "The path to China's zero‐carbon target: Implications for the relationship between de‐coal, economic output, and carbon dioxide emissions," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(1), pages 100-112, February.
    5. Man Wang & Manman Gao & Huimin Cao & Zhenyu Yan & Muhammad Taimoor & Jiapeng Xu, 2026. "Policy impact of national comprehensive pilot initiative for new-type urbanization on carbon emissions from rural energy consumption in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(3), pages 5823-5851, March.
    6. Huang, Chenchen & Lin, Boqiang, 2025. "The impact of digital economy on energy rebound effect in China: A stochastic energy demand frontier approach," Energy Policy, Elsevier, vol. 196(C).

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