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The economy-wide rebound effect from improved energy efficiency in Swedish industries – A general equilibrium analysis

Author

Listed:
  • Broberg, Thomas

    (CERE)

  • Berg, Charlotte

    (National Institute of Economic Research)

  • Samakovlis, Eva

    (National Institute of Economic Research)

Abstract

The objective of this paper is to analyze the rebound effect from increased efficiency in industrial use of energy in Sweden. Energy efficiency improvements can have sig-nificant micro- and macroeconomic effects that hampers the positive effect on real energy savings. To assess the size of the overall rebound effect in the Swedish econo-my we apply a computable general equilibrium model. The results show that the economy-wide rebound effect in Sweden depends on a number of factors, e.g. the extent of the energy efficiency improvement, how the labour market is modeled as well as if the increase in energy efficiency is combined with a cost or not. We find that the rebound effect following a 5 percent increase of energy efficiency in the Swedish industry lies in the range of 40-70 percent. When energy efficiency only is improved in energy-intensive production, the rebound effect becomes even higher. These findings are in line with the results in the literature.

Suggested Citation

  • Broberg, Thomas & Berg, Charlotte & Samakovlis, Eva, 2014. "The economy-wide rebound effect from improved energy efficiency in Swedish industries – A general equilibrium analysis," CERE Working Papers 2014:8, CERE - the Center for Environmental and Resource Economics.
    • Handle: RePEc:hhs:slucer:2014_008
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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