A new approach to measuring the rebound effect associated to energy efficiency improvements: An application to the US residential energy demand

By Luis Orea, Manuel Llorca, Massimo Filippini. 2015

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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.

Subfields: Automotive Engineering, Environmental Engineering, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/c3a2a66cd070019cb853ff22b0cb3555ddc93ac8

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Citations in the corpus

Energy efficiency and economy-wide rebound effects: A review of the evidence and its implications (2021, background): “Thus, for example, we exclude studies that focus upon individual energy services [63], or upon individual economic sectors [64], as well as those that rely solely upon input-output models (e.”