Heterogeneity in the Rebound Effect – Further Evidence for Germany

Abstract

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Heterogeneity in the response to gasoline prices: Evidence from Pennsylvania and implications for the rebound effect

“…Our finding of a greater responsiveness for drivers of lower fuel economy vehicles corresponds with similar findings from California by Knittel and Sandler (2013) and Germany by Frondel et al (2012). What is new about our result is that it is based on actual annual odometer reading data from all vehicles in a large area, rather than just older vehicles in California or trip diary data from Germany.…”

“…For context, it implies slightly more responsiveness than Small and van Dender (2007a) and slightly less responsiveness than estimates by Gillingham (2014) and Knittel and Sandler (2013) for California. It also implies much less responsiveness than estimates using German travel diary data by Frondel et al (2012), which show elasticities in the range of -0.4 to -0.7.…”

“…What is new about our result is that it is based on actual annual odometer reading data from all vehicles in a large area, rather than just older vehicles in California or trip diary data from Germany. Similarly, Gillingham (2011), Frondel et al (2012) and Gillingham (2014) also use quantile regression approaches to examine the driving responsiveness to gasoline prices, but this is the first paper to both examine all vehicles using revealed odometer readings and include fixed effects in the quantile regressions to address potentially correlated unobservables.…”

The signaling effect of gasoline taxes and its distributional implications

“…27 Kayser (2000), Hughes et al (2008), Spiller and Stephens (2012) and Gillingham (2014) find the gasoline demand of wealthier households to be more price elastic. Wadud et al (2008Wadud et al ( , 2009Wadud et al ( , 2010b find the price elasticities to be highest at the bottom and at the top of the income distribution, while Hausman and Newey (1995), Brännlund and Nordström (2004) and Frondel et al (2012) do not find statistically significant differences in price elasticities across income levels. This heterogeneity of outcomes may be due to multiple factors affecting gasoline demand.…”

An analysis of the household energy rebound effect from a practice perspective: spatial and temporal dimensions

“…Furthermore, most of the research on consumption rebound has focused on transport. Very few studies have focused on inside-the-home rebounds, and these have mainly had an economic framing, examining price elasticities as well as other price and income effects associated with rebound (Thomas and Azevedo 2013;Frondel et al 2012;Fouquet and Pearson 2012;Biswanger 2001). Aside from economics, the main contributions to studying rebound have come from social psychologists, who have examined the role of changing attitudes, norms, and social behaviors in fostering rebound (de Haan et al 2006;Hofstetter et al 2006;Dutschke et al 2013).…”