Distinguishing economic and moral compensation in the rebound effect: A theoretical and experimental approach

Simon Mathex (), Lisette Ibanez and Raphaële Préget ()
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Simon Mathex: CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier
Raphaële Préget: CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier

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Abstract: The rebound effect occurs when improvements in energy efficiency result in lower energy savings than expected due to changes in behavior. These behavioral changes can be caused by an economic compensation and a moral compensation. For moral compensation, we consider moral licensing effect, but also the case of moral cleansing effect. The objective of our paper is to distinguish the economic and moral compensation in the rebound effect. To do so, we propose a theoretical model and an online experiment with 1622 subjects. Our experimental results show that an improvement in energy efficiency leads to a rebound effect through economic compensation. Concerning moral compensation, we do not observe any moral licensing but rather consistent behavior among participants with strong environmental attitudes. Finally, we find evidence for moral cleansing, which reduces the magnitude of the rebound effect.

Keywords: Rebound effect; economic compensation; moral compensation; moral licensing effect; moral cleansing effect; online experiment (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-env and nep-exp
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Working Paper: Distinguishing economic and moral compensation in the rebound effect: A theoretical and experimental approach (2023)
Working Paper: Distinguishing economic and moral compensation in the rebound effect: A theoretical and experimental approach (2023)
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