Estimating direct and indirect rebound effects for U.S. households with input–output analysis Part 1: Theoretical framework
Brinda A. Thomas and
Inês L. Azevedo
Ecological Economics, 2013, vol. 86, issue C, pages 199-210
This is the first part of a two-part paper providing an analytical model of the indirect rebound effect, given a direct rebound estimate, that integrates consumer demand theory with the embodied energy of household spending from environmentally-extended input–output analysis. The second part applies the model developed in part one to simulate the direct and indirect rebound for the average U.S. household in terms of primary energy, CO2e, NOx, and SO2 emissions and for energy efficiency investments in electricity, natural gas, or gasoline services. Part one provides a critical review of the largely independent economic and industrial ecology literatures on the indirect rebound. By studying the two-goods case and the n-goods case, we demonstrate that the indirect rebound is bounded by the consumer budget constraint, and inversely related to the direct rebound. We also compare the common proportional spending and income elasticity spending assumptions with our model of cross-price elasticities including both substitution and income effects for the indirect rebound. By assuming zero incremental capital costs and the same embodied energy as conventional technologies for efficient appliances, we model an upper bound of the indirect rebound. Future work should also consider the increase in consumer welfare possible through the rebound effect.
Keywords: Direct rebound; Indirect rebound; Residential energy demand; Energy efficiency; Input–output model (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:eee:ecolec:v:86:y:2013:i:c:p:199-210
Access Statistics for this article
Ecological Economics is currently edited by C. J. Cleveland
More articles in Ecological Economics from Elsevier
Series data maintained by Zhang, Lei ().