Energy efficiency and economy-wide rebound

The Rebound Effect and its Representation in Energy and Climate Models

“…On the consumption side, similar to on the production side, Ryan et al [2017] suggests that the policy focus should expand to consider not only improvements in energy efficiency in energy-intensive sectors, but also how these improvements interact with less energy-intensive sectors, and in China, Wang et al [2016] found that in residential electricity consumption, investment should be promoted in energy-saving technologies. Moreover, while it is common to consider heterogeneity in energy services, attributes, etc.…”

“…Another topic to examine more closely is the impact of energy efficiency improvements on primary energy, which could benefit expansion of energy services (intermediate energy) [Lu et al, 2017]. With regard to growth expansion, Ryan et al [2017] recommend examining trade-offs between economic expansion and energy efficiency improvement. Finally, investigating rebound effect behavior in time is of importance, as it is theoretically possible that long-run elasticities are lower than short-run elasticities [Wei, 2010], while on empirical grounds, Lu et al [2017] finds that the long-run energy rebound effect diminishes.…”

“…More recently, heterogeneity has played an important role in studies, disaggregating specific energy-intensive and less energy-intensive energy services (e.g. public vs. private transport or fossil fuel-vs. renewable-sourced heating), and including the representation of durable goods/investments within energy service sectors could provide more precise policy advice [Ryan et al, 2017], [Figus et al, 2018]. Figure 3 shows RE magnitudes obtained in ex-ante studies examined in this review.…”