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Rebound Effects in German Residential Heating: Do Ownership and Income Matter?

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  • Madlener, Reinhard

    () (E.ON Energy Research Center, Institute for Future Energy Consumer Needs and Behavior (FCN), RWTH Aachen University)

  • Hauertmann, Maximilian

    () (RWTH Aachen University)

Abstract

In this paper, by using panel data and a fixed effects model, we estimate the direct rebound effect related to space heating in German residential households. The data used are from a representative repeated survey among some 11,000 households in Germany provided by the German Institute of Economic Research (DIW Berlin). We find that for the size of the direct rebound effect, i.e. the amount of energy consumption “taken back” when energy efficiency rises, income and ownership matter significantly. The estimated rebound effects for the different household groups range between 12% for owners (income class “all”) and 49% for tenants (income class “low”). Tenants are found to have much higher rebound effects. Higher income owner households have a slightly higher rebound than lower income households (14% vs. 13%), whereas for tenant households the outcome is reversed (31% vs. 49%). We conclude that energy rebound effects in the residential sector should be tackled in energy policy making in a differentiated way, and certainly not ignored in energy efficiency policies.

Suggested Citation

  • Madlener, Reinhard & Hauertmann, Maximilian, 2011. "Rebound Effects in German Residential Heating: Do Ownership and Income Matter?," FCN Working Papers 2/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
  • Handle: RePEc:ris:fcnwpa:2011_002
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    References listed on IDEAS

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    Cited by:

    1. Michelsen, Carl Christian & Madlener, Reinhard, 2012. "Homeowners' preferences for adopting innovative residential heating systems: A discrete choice analysis for Germany," Energy Economics, Elsevier, vol. 34(5), pages 1271-1283.
    2. Feser, Daniel & Bizer, Kilian & Rudolph-Cleff, Annette & Schulze, Joachim, 2016. "Energy audits in a private firm environment: Energy efficiency consultants' cost calculation for innovative technologies in the housing sector," Center for European, Governance and Economic Development Research Discussion Papers 275, University of Goettingen, Department of Economics.
    3. Dergiades, Theologos & Madlener, Reinhard & Christofidou, Georgia, 2012. "The Nexus between Natural Gas Spot and Futures Prices at NYMEX: Do Weather Shocks and Non-Linear Causality in Low Frequencies Matter?," FCN Working Papers 17/2012, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), revised Sep 2013.
    4. Galvin, Ray, 2014. "Estimating broad-brush rebound effects for household energy consumption in the EU 28 countries and Norway: some policy implications of Odyssee data," Energy Policy, Elsevier, vol. 73(C), pages 323-332.
    5. Aydin, Erdal, 2016. "Energy conservation in the residential sector : The role of policy and market forces," Other publications TiSEM b9cedba8-1310-4097-90fb-b, Tilburg University, School of Economics and Management.
    6. Rohlfs, Wilko & Madlener, Reinhard, 2011. "Multi-Commodity Real Options Analysis of Power Plant Investments: Discounting Endogenous Risk Structures," FCN Working Papers 22/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    7. Harmsen - van Hout, Marjolein & Ghosh, Gaurav & Madlener, Reinhard, 2013. "An Evaluation of Attribute Anchoring Bias in a Choice Experimental Setting," FCN Working Papers 6/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    8. Benjamin Volland, 2016. "Efficiency in Domestic Space Heating: An Estimation of the Direct Rebound Effect for Domestic Heating in the U.S," IRENE Working Papers 16-01, IRENE Institute of Economic Research.
    9. Bernstein, Ronald & Madlener, Reinhard, 2011. "Responsiveness of Residential Electricity Demand in OECD Countries: A Panel Cointegation and Causality Analysis," FCN Working Papers 8/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    10. Heesen, Florian & Madlener, Reinhard, 2016. "Technology Acceptance as Part of the Energy Performance Gap in Energy-Efficient Retrofitted Dwellings," FCN Working Papers 25/2014, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    11. repec:eee:ecolec:v:141:y:2017:i:c:p:53-65 is not listed on IDEAS
    12. Kraas, Birk & Schroedter-Homscheidt, Marion & Pulvermüller, Benedikt & Madlener, Reinhard, 2011. "Economic Assessment of a Concentrating Solar Power Forecasting System for Participation in the Spanish Electricity Market," FCN Working Papers 12/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    13. Michelsen, Carl Christian & Madlener, Reinhard, 2011. "Homeowners' Preferences for Adopting Residential Heating Systems: A Discrete Choice Analysis for Germany," FCN Working Papers 9/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    14. Galvin, Ray, 2015. "‘Constant’ rebound effects in domestic heating: Developing a cross-sectional method," Ecological Economics, Elsevier, vol. 110(C), pages 28-35.
    15. Galvin, Ray, 2015. "The rebound effect, gender and social justice: A case study in Germany," Energy Policy, Elsevier, vol. 86(C), pages 759-769.
    16. Hendrik Schmitz & Reinhard Madlener, 2016. "Heterogeneity in Price Responsiveness for Residential Space Heating in Germany," SOEPpapers on Multidisciplinary Panel Data Research 877, DIW Berlin, The German Socio-Economic Panel (SOEP).
    17. Copiello, Sergio, 2017. "Building energy efficiency: A research branch made of paradoxes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1064-1076.
    18. Cecile Hediger & Mehdi Farsi & Sylvain Weber, 2016. "Turn it up and open the window: On the rebound effects in residential heating," IRENE Working Papers 16-11, IRENE Institute of Economic Research.
    19. Rohlfs, Wilko & Madlener, Reinhard, 2013. "Challenges in the Evaluation of Ultra-Long-Lived Projects: Risk Premia for Projects with Eternal Returns or Costs," FCN Working Papers 13/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    20. Harmsen - van Hout, Marjolein & Ghosh, Gaurav & Madlener, Reinhard, 2013. "The Impact of Green Framing on Consumers’ Valuations of Energy-Saving Measures," FCN Working Papers 7/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    21. Galassi, Veronica & Madlener, Reinhard, 2016. "Some Like it Hot: The Role of Environmental Concern and Comfort Expectations in Energy Retrofit Decisions," FCN Working Papers 11/2016, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    22. Chitnis, Mona & Sorrell, Steve & Druckman, Angela & Firth, Steven K. & Jackson, Tim, 2014. "Who rebounds most? Estimating direct and indirect rebound effects for different UK socioeconomic groups," Ecological Economics, Elsevier, vol. 106(C), pages 12-32.
    23. Copiello, Sergio & Grillenzoni, Carlo, 2017. "Is the cold the only reason why we heat our homes? Empirical evidence from spatial series data," Applied Energy, Elsevier, vol. 193(C), pages 491-506.

    More about this item

    Keywords

    Rebound effect; SOEP panel; fixed effects; energy efficiency;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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