Economics at your fingertips  

A hybrid energy system model to evaluate the impact of climate policy on the manufacturing sector: Adoption of energy-efficient technologies and rebound effects

Hwarang Lee, Sung Won Kang and Yoonmo Koo

Energy, 2020, vol. 212, issue C

Abstract: Improving efficiency is an important option for reducing manufacturing sector emissions. More efficient technologies reduce energy use and emissions. However, efficiency improvements can induce unexpected effects known as rebound effects. Although previous studies have analyzed these effects, these studies fail to precisely evaluate the rebound effects due to improvements in technology efficiency. Bottom-up models are appropriate for analyzing efficiency improvements at the technology level, but they face limitations in exploring output changes because they usually assume that demand is given. In contrast, top-down models are appropriate for observing output changes in an efficiency-improving sector and in the rest of the economy, but they face limitations in explicitly describing technological changes. This study therefore constructs a hybrid model to overcome the limitations of both types of models and evaluates the impacts of climate policy in Korea’s manufacturing sector when rebound effects are considered. The expected emissions reduction due to new technology adoption in the manufacturing sector is 23.8 million tons CO2eq without rebound effects, but when rebound effects are included, the actual emission reduction (12.7 million tons CO2eq) is about 50% of the expected amount.

Keywords: Rebound effect; Hybrid model; Bottom-up model; Top-down model; Technology efficiency improvement; CO2 emission (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

DOI: 10.1016/

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2021-06-30
Handle: RePEc:eee:energy:v:212:y:2020:i:c:s0360544220318260