Increased Energy Efficiency and the Rebound Effect: Effects on consumption and emissions

Runar Brännlund (), Tarek Ghalwash () and Jonas Nordström ()
Additional contact information
Runar Brännlund: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
Jonas Nordström: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden

No 642, Umeå Economic Studies from Umeå University, Department of Economics

Abstract: In this paper we examine how the Swedish consumers consumption basket have changed over time, and how this have affected emissions of carbon dioxide (CO2), sulphur dioxide (SO2) and nitrogen oxide (NOx). More specifically we examine how exogenous technological progress in terms of an increase in energy efficiency affects consumption and emissions. Due to the change in energy efficiency we calculate the necessary change in the CO2 tax to keep CO2 emissions at the initial level, and how this affects emissions of sulphur dioxide and nitrogen oxides. The results indicate that an increased energy efficiency of 20 percent will increase the emissions of CO2 by approximately 5 percent. To reduce the CO2 emissions to the initial level, the CO2 tax has to be raised by 130 percent. This tax increase will reduce the emissions of sulphur dioxide below the initial level, but will leave the emissions of nitrogen oxides at a higher level than the initial one. Thus, if marginal damages from sulphur dioxide and nitrogen dioxide are non-constant, additional policy instruments are needed.

Keywords: Household consumption; energy demand; emissions; taxation. (search for similar items in EconPapers)
JEL-codes: D12 H31 Q41 (search for similar items in EconPapers)
Date: 2004-11-01
View list of references View citations in EconPapers

Published in Energy Economics, 2007, pages 1-17.

Downloads: (external link)
http://www.econ.umu.se/ues/ues642.pdf (application/pdf)
http://www.econ.umu.se/ues/ues642.pdf.zip (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hhs:umnees:0642

Access Statistics for this paper

More papers in Umeå Economic Studies from Umeå University, Department of Economics
Address: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
Contact information at EDIRC.
Series data maintained by Kjell-Göran Holmberg ().