Income dependent direct and indirect rebound effects from ’green’ consumption choices in Australia
Changing household behaviour is often encouraged as a means of reducing energy demand and subsequently greenhouse gas (GHG) emissions. The direct and indirect rebound effects from cost-saving ‘green’ household consumption choices were estimated using Australian data. Rebound effects from cost-saving 'green' consumption choices are modelled as income effects, allowing for variation with households income level. Cases examined are: reduced vehicle use, reduced electricity use, the adoption of energy efficient vehicles, and the adoption of energy efficient electrical lighting. Four econometric estimation models are utilised to estimate income effects, and the before and after expenditure patterns are matched with life-cycle assessment (LCA) estimates of the embodied GHG of each expenditure category. Direct and indirect rebound effects alone are estimated at around 10% for household electricity conservation, and for reduced vehicle fuel consumption around 20%, at the median household income level. Direct rebound effects are larger for low-income households; however, indirect effects are larger for higher income households. The scale of the effect estimated, and the variation with household incomes, is attributed to LCA methodologies. These results should be interpreted as the minimum rebound effect, with greater rebound effects, and decreased effectiveness of household ‘green’ consumption, expected in reality.
|Date of creation:||01 Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roy, Joyashree, 2000. "The rebound effect: some empirical evidence from India," Energy Policy, Elsevier, vol. 28(6-7), pages 433-438, June.
- G. S. Maddala, 1965. "Productivity and Technological Change in the Bituminous Coal Industry, 1919-54," Journal of Political Economy, University of Chicago Press, vol. 73, pages 352.
- Vringer, Kees & Blok, Kornelis, 1995. "The direct and indirect energy requirements of households in the Netherlands," Energy Policy, Elsevier, vol. 23(10), pages 893-910, October.
- Milne, Geoffrey & Boardman, Brenda, 2000. "Making cold homes warmer: the effect of energy efficiency improvements in low-income homes A report to the Energy Action Grants Agency Charitable Trust," Energy Policy, Elsevier, vol. 28(6-7), pages 411-424, June.
- Sorrell, Steve & Dimitropoulos, John, 2008. "The rebound effect: Microeconomic definitions, limitations and extensions," Ecological Economics, Elsevier, vol. 65(3), pages 636-649, April.
- Mizobuchi, Kenichi, 2008. "An empirical study on the rebound effect considering capital costs," Energy Economics, Elsevier, vol. 30(5), pages 2486-2516, September.
- repec:ner:tilbur:urn:nbn:nl:ui:12-152985 is not listed on IDEAS
- Ornetzeder, Michael & Hertwich, Edgar G. & Hubacek, Klaus & Korytarova, Katarina & Haas, Willi, 2008. "The environmental effect of car-free housing: A case in Vienna," Ecological Economics, Elsevier, vol. 65(3), pages 516-530, April.
- Lenzen, Manfred & Dey, Christopher J., 2002. "Economic, energy and greenhouse emissions impacts of some consumer choice, technology and government outlay options," Energy Economics, Elsevier, vol. 24(4), pages 377-403, July.
- Holtz-Eakin, Douglas & Selden, Thomas M., 1995.
"Stoking the fires? CO2 emissions and economic growth,"
Journal of Public Economics,
Elsevier, vol. 57(1), pages 85-101, May.
- Douglas Holtz-Eakin & Thomas M. Selden, 1992. "Stoking the Fires? Co2 Emissions and Economic Growth," NBER Working Papers 4248, National Bureau of Economic Research, Inc.
- Berkhout, Peter H. G. & Muskens, Jos C. & W. Velthuijsen, Jan, 2000. "Defining the rebound effect," Energy Policy, Elsevier, vol. 28(6-7), pages 425-432, June.
- Hanley, Nick & McGregor, Peter G. & Swales, J. Kim & Turner, Karen, 2009. "Do increases in energy efficiency improve environmental quality and sustainability?," Ecological Economics, Elsevier, vol. 68(3), pages 692-709, January.
- Madlener, R. & Alcott, B., 2009. "Energy rebound and economic growth: A review of the main issues and research needs," Energy, Elsevier, vol. 34(3), pages 370-376.
- Kok, Rixt & Benders, Rene M.J. & Moll, Henri C., 2006. "Measuring the environmental load of household consumption using some methods based on input-output energy analysis: A comparison of methods and a discussion of results," Energy Policy, Elsevier, vol. 34(17), pages 2744-2761, November.
- Weber, Christoph & Perrels, Adriaan, 2000. "Modelling lifestyle effects on energy demand and related emissions," Energy Policy, Elsevier, vol. 28(8), pages 549-566, July.
- Karunaratne, Neil Dias, 1981. "An input-output analysis of Australian energy planning issues," Energy Economics, Elsevier, vol. 3(3), pages 159-168, July.
- Saunders, Harry D., 2000. "A view from the macro side: rebound, backfire, and Khazzoom-Brookes," Energy Policy, Elsevier, vol. 28(6-7), pages 439-449, June.
- Bovenberg, A.L. & de Mooij, R.A., 1994.
"Environmental levies and distortionary taxation,"
Other publications TiSEM
4b32deaa-ec2f-4de7-b59b-9, School of Economics and Management.
- Brännlund, Runar & Ghalwash, Tarek & Nordström, Jonas, 2004.
"Increased Energy Efficiency and the Rebound Effect: Effects on consumption and emissions,"
Umeå Economic Studies
642, Umeå University, Department of Economics.
- Brannlund, Runar & Ghalwash, Tarek & Nordstrom, Jonas, 2007. "Increased energy efficiency and the rebound effect: Effects on consumption and emissions," Energy Economics, Elsevier, vol. 29(1), pages 1-17, January.
- Reinders, A. H. M. E. & Vringer, K. & Blok, K., 2003. "The direct and indirect energy requirement of households in the European Union," Energy Policy, Elsevier, vol. 31(2), pages 139-153, January.
- Brookes, L G, 1972. "More on the Output Elasticity of Energy Consumption," Journal of Industrial Economics, Wiley Blackwell, vol. 21(1), pages 83-92, November.
- Druckman, Angela & Chitnis, Mona & Sorrell, Steve & Jackson, Tim, 2011. "Missing carbon reductions? Exploring rebound and backfire effects in UK households," Energy Policy, Elsevier, vol. 39(6), pages 3572-3581, June.
- Schipper, Lee & Grubb, Michael, 2000. "On the rebound? Feedback between energy intensities and energy uses in IEA countries," Energy Policy, Elsevier, vol. 28(6-7), pages 367-388, June.
- Greening, Lorna A. & Ting, Michael & Krackler, Thomas J., 2001. "Effects of changes in residential end-uses and behavior on aggregate carbon intensity: comparison of 10 OECD countries for the period 1970 through 1993," Energy Economics, Elsevier, vol. 23(2), pages 153-178, March.
- Bento, Antonio M. & Jacobsen, Mark, 2007. "Ricardian rents, environmental policy and the `double-dividend' hypothesis," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 17-31, January.
- Vringer, Kees & Aalbers, Theo & Blok, Kornelis, 2007. "Household energy requirement and value patterns," Energy Policy, Elsevier, vol. 35(1), pages 553-566, January.
- Lenzen, Manfred & Dey, Christopher & Foran, Barney, 2004. "Energy requirements of Sydney households," Ecological Economics, Elsevier, vol. 49(3), pages 375-399, July.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:34973. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.