The Full Impact of Energy Efficiency on Households' Energy Demand
This paper deals with technical progress in the energy efficiency of US households' capital stock (appliances and passenger cars) and its potential for energy saving. An increase in the energy efficiency of households can only be achieved via a different capital stock. The link between the average energy efficiency and the stock of energy-using durables is econometrically estimated based on a new data set of household appliances and passenger cars. This relationship complements a Quadratic Almost Ideal Demand System (QUAIDS) for six consumption categories (non-durables), including heating, electricity and transport. Any increase in energy efficiency lowers the corresponding "service" price and leads to a "rebound effect". A simulation exercise shows how the ceteris paribus-rebound effect is changed by taking into account the capital costs and other interdependencies and feedbacks that can only be captured by a full model of household demand.
|Date of creation:||18 Feb 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (+43 1) 798 26 01-0
Fax: (+43 1) 798 93 86
Web page: http://www.wifo.ac.at/
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.:
- Sue Wing, Ian, 2006. "Representing induced technological change in models for climate policy analysis," Energy Economics, Elsevier, vol. 28(5-6), pages 539-562, November.
- Jose Luengo-Prado, Maria, 2006.
"Durables, nondurables, down payments and consumption excesses,"
Journal of Monetary Economics,
Elsevier, vol. 53(7), pages 1509-1539, October.
- Maria J. Luengo-Prado, 2004. "Durables, Nondurables, Down Payments and Consumption Excesses," Macroeconomics 0408006, EconWPA.
When requesting a correction, please mention this item's handle: RePEc:wfo:wpaper:y:2010:i:356. 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: (Ilse Schulz)
If references are entirely missing, you can add them using this form.