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The direct rebound effect for two income groups: The case of Paraguay

Author

Listed:
  • Martín Bordón Lesme

    (Department of Applied Economics, Univ. Autonoma de Barcelona, 08193 Bellaterra, Spain)

  • Jaume Freire-González

    (ENT Foundation, Josep Llanza, 1-7, 2 3, 08800 Vilanova i la Geltrú, Barcelona)

  • Emilio Padilla Rosa

    (Department of Applied Economics, Univ. Autonoma de Barcelona, 08193 Bellaterra, Spain)

Abstract

We estimate the direct rebound effect (DRE) for all energy services requiring electricity for their provision in Paraguayan households. Using recent panel data from 2001 to 2017, we estimate the magnitude of the DRE at the province and municipality levels. Because we estimate the DRE through the own-price elasticity of electricity demand, we not only provide the first empirical evidence of the DRE for Paraguay, a developing country, but also update the study of Paraguay’s residential electricity demand. Our findings suggest a positive DRE emerges after an improvement in energy efficiency, but the magnitude of the DRE does not completely reduce the resulting energy savings. We find a lower DRE in low-income households, which may be explained by two factors: electricity is not the main source of energy for most low-income households, and most clandestine electricity connections are from low-income households. Paraguay is one of the countries with the highest generation of electricity per capita through hydroelectric plants. However, this electricity supply does not match electricity consumption, especially in low-income households, because of distribution issues in relation to energy sources

Suggested Citation

  • Martín Bordón Lesme & Jaume Freire-González & Emilio Padilla Rosa, 2021. "The direct rebound effect for two income groups: The case of Paraguay," Working Papers wpdea2103, Department of Applied Economics at Universitat Autonoma of Barcelona.
    • Handle: RePEc:uab:wprdea:wpdea2103
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    References listed on IDEAS

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    Keywords

    Direct Rebound Effect; Electricity Consumption; Energy Services; Low-Income Households; Panel Data.;
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