 Reform of refined oil product pricing mechanism and energy rebound effect for passenger transportation in ChinaBoqiang Lin () and Xia Liu Energy Policy, 2013, vol. 57, issue C, 329-337 Abstract: Improving energy efficiency is the primary method adopted by the Chinese government in an effort to achieve energy conservation target in the transport sector. However, the offsetting effect of energy rebound would greatly reduce its real energy-saving potentials. We set up a Linear Approximation of the Almost Ideal Demand System Model (LA-AIDS model) to estimate the rebound effect for passenger transportation in China. Real energy conservation effect of improving energy efficiency can also be obtained in the process. The result shows that the rebound effect is approximately 107.2%. This figure signifies the existence of ‘backfire effect’, indicating that efficiency improvement in practice does not always lead to energy-saving. We conclude that one important factor leading to the rebound effect, is the refined oil pricing mechanism. China's refined oil pricing mechanism has been subjected to criticism in recent years. The results of simulation analysis show that the rebound could be reduced to approximately 90.7% if the refined oil pricing mechanism is reformed. In this regard, we suggest further reforms in the current refined oil pricing mechanism. Keywords: Refined oil pricing mechanism; LA-AIDS model; Rebound effect (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:57:y:2013:i:c:p:329-337 DOI: 10.1016/j.enpol.2013.02.002 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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