Technological innovation, energy efficient design and the rebound effect

Abstract

Does technological innovation to improve the efficiency of energyusing products and systems lead to lower energy consumption and hence reduced environmental impacts? The answer given by economists since the mid nineteenth century is 'no'. This is because there are direct 'rebound' or 'takeback' effects caused by energy efficiency improvements that lower the implicit price of energy, often leading to greater consumption. Also there are secondary or indirect effects of reducing energy costs through efficiency in that consumers may buy more products and/or choose, larger, more powerful, more feature laden models. Thus just promoting technical innovation to increase energy efficiency is unlikely to lead to reduced energy consumption and emissions. Other policies such as taxation or regulation are required.As well as setting the theoretical arguments concerning innovation and energy efficiency the paper outlines results from an empirical research project, 'Peoplecentred ecodesign', which seeks to identify the key influencing factors on consumer adoption and effective use of energy efficient products and systems. In particular it aims to identify how consumers may avoid (or mitigate) rebound effects and how manufacturers, service providers and government might design and promote such products to achieve their optimal environmental benefits.

Relieving fuel poverty in Wales with external wall insulation

“…The occurrence of the rebound effect was expected and is consistent with findings from studies undertaken by other researchers, such as Boardman (2007), Herring and Roy (2007), Hong et al (2009) andPalmer andCooper (2011). Occupants at three of the five case study dwellings stated that they felt their home was warmer since the EWI was installed; one stated that they were not sure, and one said that it was not warmer.…”

Smart technology in the home: time for more clarity

“…Energy demand analysts have shown the way, for example, with research into the rebound effect (e.g. Herring & Roy, 2007); change and continuity in household practices (GramHanssen, 2011;Stephenson et al, 2010); the fine detail of technology adoption (Caird, Roy, & Potter, 2012); and the situations of householders worldwide who are taking part in energy transitions (Sovacool, 2012). All such studies demonstrate how it is impossible to predict outcomes even from 'passive' or 'fit and forget' technology deployment without reference to householder understandings, choices, activities and social networks.…”

Sufficiency or efficiency to achieve lower resource consumption and emissions? The role of the rebound effect

“…Eco-efficiency [1][2][3][4] can be put forward as a "win-win" strategy to arrive at a more sustainable use of resources. However it is criticised for its limited ability to lower resource consumption and emissions due to the rebound effect [5][6][7][8][9]. If an increase in efficiency does not reduce resource use then an overall reduction in economic activity is called for.…”