Sectoral Electricity Demand and Direct Rebound Effects in New Zealand

Rabindra Nepal*, Muhammad Indra al Irsyad, Tooraj Jamasb

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

This paper is one of the limited studies to investigate rebound effects in sectoral electricity consumption and the specific case of New Zealand. New Zealand, like other OECD economies, has aimed for energy efficiency improvements and reduced electricity consumption from 9.2 MWh per capita in 2010 to 8.6 MWh per capita in 2015. However, following a significant decline since 2010, electricity consumption in the main New Zealand sectors is increasing. Energy conservation could play an important role in meeting the growing demand for electricity but rebound effects can affect the effectiveness of conservation policies. We decompose the sectoral electricity prices to capture the asymmetric demand response to electricity price changes and estimate electricity demand elasticity during 1980 and 2015 to estimate the sectoral rebound effects. We find partial rebound effects of 54% and 23% in the industrial and commercial sectors respectively while we find no rebound effect at the aggregate level. The rebound effect is insignificant in the residential sector. These findings lead to policy recommendations for sector specific energy conservation measures and policies.
Original languageEnglish
JournalThe Energy Journal
Volume42
Issue number4
Pages (from-to)153-173
Number of pages21
ISSN0195-6574
DOIs
Publication statusPublished - 2021

Bibliographical note

Published online: 26 October 2020.

Keywords

  • Electricity
  • Demand
  • Rebound
  • Heating
  • Time series analysis

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