A New Approach to Measuring the Rebound Effect Associated to Energy Efficiency Improvements: An Application to the US Residential Energy Demand

Luis Orea, Manuel Llorca, Massimo Filippini

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Abstrakt

This paper brings attention to the fact that the energy demand frontier model introduced by Filippini and Hunt (2011, 2012) is closely connected to the measurement of the so-called rebound effect associated with improvements in energy efficiency. In particular, we show that their model implicitly imposes a zero rebound effect, which contradicts most of the available empirical evidence on this issue. We relax this restrictive assumption through the modelling of a rebound-effect function that mitigates or intensifies the effect of an efficiency improvement on energy consumption. We illustrate our model with an empirical application that aims to estimate a US frontier residential aggregate energy demand function using panel data for 48 states over the period 1995 to 2011. Average values of the rebound effect in the range of 56-80% are found. Therefore, policymakers should be aware that most of the expected energy reduction from efficiency improvements may not be achieved.
OriginalsprogEngelsk
TidsskriftEnergy Economics
Vol/bind49
Sider (fra-til)599-609
Antal sider11
ISSN0140-9883
DOI
StatusUdgivet - maj 2015
Udgivet eksterntJa

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