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Energetic and Economic Aspects of Rebound, Part I: Foundations of a Rigorous Analytical Framework

Author

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  • Matthew Kuperus Heun
  • Gregor Semieniuk
  • Paul E. Brockway

Abstract

Widespread implementation of energy efficiency is a key greenhouse gas emissions mitigation measure, but rebound can “take back†energy savings. However, the absence of solid analytical foundations hinders empirical determination of the size of rebound. A new clarity is needed, one that involves both economics and energy analysis. In this paper (Part I), we advance foundations of a rigorous analytical framework for consumer-sided rebound that starts at the microeconomic level and is approachable for both energy analysts and economists. We develop foundations of a framework that (i) clarifies the energy, expenditure, and consumption aspects of rebound, (ii) combines embodied energy with operations, maintenance, and disposal effects (under a new “emplacement effect†), and (iii) provides the first operationalized link between microeconomic and macroeconomic levels. The framework enables determination of the effects of non-marginal energy service price decreases, satiated demand for the energy service, and reduced economy-wide energy demand. JEL Classification : O13, Q40, Q43

Suggested Citation

  • Matthew Kuperus Heun & Gregor Semieniuk & Paul E. Brockway, 2025. "Energetic and Economic Aspects of Rebound, Part I: Foundations of a Rigorous Analytical Framework," The Energy Journal, , vol. 46(5), pages 245-307, September.
    • Handle: RePEc:sae:enejou:v:46:y:2025:i:5:p:245-307
    DOI: 10.1177/01956574251331969
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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