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Rebound Effects for Household Energy Services in the UK

Mona Chitnis, Roger Fouquet, and Steve Sorrell

Year: 2020
Volume: Volume 41
Number: Number 4
DOI: 10.5547/01956574.41.4.mchi
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Abstract:
This study estimates the combined direct and indirect rebound effects from energy efficiency improvements in the delivery of six energy services to UK households, namely: heating; lighting; cooking; refrigeration and clothes washing; entertainment and computing; and private vehicle travel. We use a unique database on the price and quantity demanded of these energy services over the past half century. We estimate a two-stage almost ideal demand system for household expenditure, using these energy services as expenditure categories. We estimate rebound effects in terms of carbon emissions and only include the �direct� emissions associated with energy consumption. Our results suggest direct rebound effects of 70% for heating, 54% for private vehicle travel and ~90% for the other energy services. However, these effects are offset by negative indirect rebound effects�that is, indirect rebounds contribute additional emission savings. As a result, our estimates of combined rebound effects are generally smaller, namely 54% for lighting, 55% for heating, 41% for refrigeration and clothes washing, �12% for entertainment and computing, 44% for cooking and 69% for vehicle travel. We also find some evidence that rebound effects have declined over time. We provide some important caveats to these results, and indicate priorities for future research.



Direct and Indirect Energy Rebound Effects in German Households: A Linearized Almost Ideal Demand System Approach

Hendrik Schmitz and Reinhard Madlener

Year: 2020
Volume: Volume 41
Number: Number 5
DOI: 10.5547/01956574.41.5.hsch
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Abstract:
We estimate direct and indirect energy rebound effects for a wide variety of goods and services in Germany. To this end, we employ a linearized approximation of the popular Almost Ideal Demand System (AIDS) approach suggested by Deaton and Muellbauer (1980). Excluding measures of energy efficiency when estimating rebound can lead to biased results. We compensate for this shortcoming of previous research by explicitly accounting for energy efficiency in our estimations. Using data for Germany from 1970 to 2017, we find moderate direct and significant indirect rebound effects for different energy carriers across four model specifications. The size of the rebound effect proves to be sensitive to the expenditure shares used for the calculations, which in some cases leads to negative overall rebound estimates.





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