Sectoral Electricity Demand and Direct Rebound Effects in New Zealand

Rabindra Nepal, Muhammad Indra al Irsyad, and Tooraj Jamasb
Authors registered in the RePEc Author Service: Tooraj Jamasb and Muhammad Indra al Irsyad (al_irsyad21@yahoo.com)

The Energy Journal, 2021, vol. Volume 42, issue Number 4

Abstract: This paper is one of the limited studies to investigate rebound effects in sectoral electricity consumption and the specific case of New Zealand. New Zealand, like other OECD economies, has aimed for energy efficiency improvements and reduced electricity consumption from 9.2 MWh per capita in 2010 to 8.6 MWh per capita in 2015. However, following a significant decline since 2010, electricity consumption in the main New Zealand sectors is increasing. Energy conservation could play an important role in meeting the growing demand for electricity but rebound effects can affect the effectiveness of conservation policies. We decompose the sectoral electricity prices to capture the asymmetric demand response to electricity price changes and estimate electricity demand elasticity during 1980 and 2015 to estimate the sectoral rebound effects. We find partial rebound effects of 54% and 23% in the industrial and commercial sectors respectively while we find no rebound effect at the aggregate level. The rebound effect is insignificant in the residential sector. These findings lead to policy recommendations for sector specific energy conservation measures and policies.

JEL-codes: C32 L94 Q41 Q48 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Sectoral Electricity Demand and Direct Rebound Effects inNew Zealand (2021)
Working Paper: Sectoral Electricity Demand and Direct Rebound Effect in New Zealand (2020)
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