Welfare Implications of the Rebound Effect From More Energy-Efficient Passenger Cars

Anwar Gasim and Ziyad Alfawzan
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Ziyad Alfawzan: King Abdullah Petroleum Studies and Research Center

Discussion Papers from King Abdullah Petroleum Studies and Research Center

Abstract: Improving the energy efficiency of passenger cars makes it cheaper to drive, allowing motorists to take to the roads more frequently. This additional driving, which offsets some of the expected energy savings from energy efficiency, is known as the rebound effect and is perceived negatively. This paper undertakes a cost-benefit analysis of the rebound effect following an energy efficiency improvement in passenger cars for 100 countries.

Keywords: Air Pollution; Economic Modeling; Energy Efficiency; Energy Policy; Fuel Economy; Fuel Prices; Greenhouse Gas Emissions (GHG); Partial Equilibrium Analysis; Passenger Cars; Policy Development; Price Elasticity; Rebound Effect; Transportation (search for similar items in EconPapers)
Pages: 34
Date: 2017-10-30
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