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Rebound effects in residential heating: How much does an extra degree matter?

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  • Cécile Hediger

Abstract

Households reactions to efficiency gains in heating, known as rebound effects, are investigated in this article. First, an increase in temperature for households living in more efficient dwellings is studied (direct rebound). This increased temperature is then converted into energy following the heating degree days method. Second, the energy embodied in the re-spending of efficiency gains savings on other goods and services than heating is assessed (indirect rebound). Overall, about 20% of the potential energy savings are taken back by those households adjustments, with a direct rebound estimated between 4% and 7%, and an indirect rebound of 15%. As only a partial direct rebound was considered, these results represent a lower limit. In addition, we find that low income households increase more their heating usage than affluent households when efficiency improves, indicating that buildings retrofits have the potential to improve the living conditions of the poorest households.

Suggested Citation

  • Cécile Hediger, 2022. "Rebound effects in residential heating: How much does an extra degree matter?," IRENE Working Papers 22-05, IRENE Institute of Economic Research.
    • Handle: RePEc:irn:wpaper:22-05
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    References listed on IDEAS

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

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