Estimating the Rebound Effect of Electricity Consumption in Iran: Threshold Level Approach

Musa Khoshkalam Khosroshahi () and Rohollah Mahdavi ()
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Musa Khoshkalam Khosroshahi: Assistance Professor of Economics, Alzahra University
Rohollah Mahdavi: Ph.D. in Economics, Allameh Tabatabaei University

Quarterly Journal of Applied Theories of Economics, 2019, vol. 5, issue 4, 173-196

Abstract: The literature on energy economics suggests a rebound effect of improving energy efficiency. Given the fact that existing rebound effect causes the electricity saving (due to the improvement of the efficiency of consumer electric appliances in the residential sector) be less than expected, the present paper based on the time series data of 1357-1395, uses linear and threshold models to estimate the direct rebound effect of residential electricity consumption in different scenarios. The results of linear model show that the direct rebound effect of residential electricity consumption in Iran during the period 1357-1395 is on average 81%. The results of the other model (threshold model), taking into account the two variables of Gross domestic product (GDP) per capita and cooling degree days (CDD) as threshold variables, show that decrease in GDP per capita and increase in cooling degree days will increase the direct rebound effect of residential electricity consumption

Keywords: Energy Economics; Electricity Consumption; Rebound Effect; Threshold Model (search for similar items in EconPapers)
JEL-codes: O13 Q41 Q43 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ris:qjatoe:0132

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