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A new approach to measuring the rebound effect associated to energy efficiency improvements: An application to the US residential energy demand

Orea, L.; Llorca, M.; Filippini, M.

A new approach to measuring the rebound effect associated to energy efficiency improvements: An application to the US residential energy demand Thumbnail


Authors

L. Orea

M. Llorca

M. Filippini



Abstract

This paper brings attention to the fact that the energy demand frontier model introduced by Filippini and Hunt (2011, 2012) is closely connected to the measurement of the so-called rebound effect associated with improvements in energy efficiency. In particular, we show that their model implicitly imposes a zero rebound effect, which contradicts most of the available empirical evidence on this issue. We relax this restrictive assumption through the modelling of a rebound-effect function that mitigates or intensifies the effect of an efficiency improvement on energy consumption. We illustrate our model with an empirical application that aims to estimate a US frontier residential aggregate energy demand function using panel data for 48 states over the period 1995 to 2011. Average values of the rebound effect in the range of 56–80% are found. Therefore, policymakers should be aware that most of the expected energy reduction from efficiency improvements may not be achieved.

Citation

Orea, L., Llorca, M., & Filippini, M. (2015). A new approach to measuring the rebound effect associated to energy efficiency improvements: An application to the US residential energy demand. Energy Economics, 49, 599-609. https://doi.org/10.1016/j.eneco.2015.03.016

Journal Article Type Article
Acceptance Date Mar 21, 2015
Online Publication Date Apr 1, 2015
Publication Date May 1, 2015
Deposit Date May 18, 2015
Publicly Available Date Mar 28, 2024
Journal Energy Economics
Print ISSN 0140-9883
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 49
Pages 599-609
DOI https://doi.org/10.1016/j.eneco.2015.03.016
Keywords US residential energy demand, Efficiency and frontier analysis, State energy efficiency, Rebound effect.
Public URL https://durham-repository.worktribe.com/output/1405425

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Copyright Statement
NOTICE: this is the author’s version of a work that was accepted for publication in Energy Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Energy Economics, 49, May 2015, 10.1016/j.eneco.2015.03.016.





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