Energy Efficiency and Rebound Effect: Does Energy Efficiency Save Energy?

Abstract

The aim of this study is to examine the theoric and empirical literature about "rebound effect". This study summarizes energy efficiency policy and programs in general and in Turkey. Also it gives defination of the "rebound effect" concept. The rebound effect is related to consumer's tendency to consume more energy due to economic benefit from efficiency improvement. The "rebound effect" is the focus of a long-running dispute of energy economics but it is very new concept in the most developing countries. In literature according to some economist gains in energy efficiency will also reduce the real per unit price of energy services and hence the consumption of energy will rise and partially offset the initial reduction in the usage of energy sources. However for others size of the rebound effect is too small to take attention. The empirical literature shows that the size of rebound effect can change from country to country and sector to sector.

Renewable Energy Investment for Middle and Upper Class Housing Sector in Indonesia: Investigating the Scope for a Change in Policy

“…Data was analized to calculate the cash flow and payback period. Economic analysis, was quite useful to calculate cost and benefit for this type of project (Buluş, 2011). Estimation on the increase of housing was also calculated using linear regression to indicate the increasing demand of energy.…”

Modelling of electricity savings in the Danish households sector: from the energy system to the end-user

“…In line with the other investments in Balmorel,in (2) it is implicitly assumed that new appliances are purchased and installed in the first hour of the year. In addition, several studies suggest that the gains achieved from new energy saving measures are usually slightly lower than what initially expected, due to the so-called rebound effect (Khazzoom 1980, Carnall et al 2015, Bulu and Topalli 2011, Shrestha and Marpaung 2006, Galvin 2010, Farinelli et al 2005, Galarraga et al 2013. This happens because the consumer typically responds to new EE measures in a way that tends to offset the effects of the changes.…”

Beyond energy efficiency in evaluating sustainable development in planning and the built environment

“…This because they have both a good efficiency in the use of energy and a very low share of energy supplied from outside the district. According to the theories of the Jevons Paradox and of the "energy rebound", the paradigm of energy efficiency is not suitable for reaching the goal of global energy saving (Boqiang 2012, Bulus, Freire-González 2011, Topalli 2011, OuYang 2010, Dimitropoulos 2007, Herring 2006, Hong 2006, Brannlund 2005, Binswanger 2001, Brookes 2000. In order to evaluate urban sustainability a better paradigm is the urban metabolism model, which is able to take into account the contribution provided by the local renewable resources (such as in Bedzed, in Bo01 and in Hammarby), rather than on models based on the increasing of an efficiency rate (such as in Millenium Greenwich and in Valderspartera).…”

“…In front of such a context, the authors of this paper believe that the scientific research goals on environmental sustainability assessment indicators and metrics should not be limited to environmental impacts mitigation approaches as current practices are showing (Binswanger 2001, Buluş 2011, Herring 2006, Hong 2006. Rather it should focus on the development of new approaches and metrics based on a mechanism able to balance between energy consumption/production and population density required for supporting human activities within a urban district.…”