The Rebound Effect with Energy Production: A Partial Equilibrium Analysis
Rebound is the extent to which improvements in energy efficiency fail to translate fully into reductions in energy use because of the implicit fall in the price of energy, when measured in efficiency units. This paper discusses aspects of the rebound effect that are introduced once energy is considered as a domestically produced commodity. A partial equilibrium approach is adopted in order to incorporate both energy use and production in a conceptually tractable way. The paper explores analytically two interesting results revealed in previous numerical simulations. The first is the possibility that energy use could fall by more than the implied improvement in efficiency. This corresponds to negative rebound. The second is the finding that the short-run rebound value can be greater than the corresponding long-run value.
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- Karen Turner, 2009.
"Negative rebound and disinvestment effects in response to an improvement in energy efficiency in the UK economy,"
0902, University of Strathclyde Business School, Department of Economics.
- Turner, Karen, 2009. "Negative rebound and disinvestment effects in response to an improvement in energy efficiency in the UK economy," Energy Economics, Elsevier, vol. 31(5), pages 648-666, September.
- Wei, Taoyuan, 2007. "Impact of energy efficiency gains on output and energy use with Cobb-Douglas production function," Energy Policy, Elsevier, vol. 35(4), pages 2023-2030, April.
- Saunders, Harry D., 2008. "Fuel conserving (and using) production functions," Energy Economics, Elsevier, vol. 30(5), pages 2184-2235, September.
- J. Daniel Khazzoom, 1980. "Economic Implications of Mandated Efficiency in Standards for Household Appliances," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 21-40.
- Turner, Karen, 2009. "Negative rebound and disinvestment effects in response to an improvement in energy efficiency in the UK economy," SIRE Discussion Papers 2009-12, Scottish Institute for Research in Economics (SIRE).
- Brookes, L. G., 1978. "Energy policy, the energy price fallacy and the role of nuclear energy in the UK," Energy Policy, Elsevier, vol. 6(2), pages 94-106, June.
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