Economy-wide Estimates of Rebound Effects: Evidence from Panel Data

Morakinyo O. Adetutu, Anthony J. Glass and Thomas G. Weyman-Jones

The Energy Journal, 2016, vol. 37, issue 3, 251-270

Abstract: Energy consumption and greenhouse emissions across many countries have increased over time despite widespread energy efficiency improvements. One explanation offered in the literature is the rebound effect (RE), however there is a debate about its magnitude and the appropriate model for estimating it. Using a combined stochastic frontier analysis (SFA) and two-stage dynamic panel data approach, we explore these two issues of magnitude and model for 55 countries over the period 1980 to 2010. Our central estimates indicate that in the short-run, 100% energy efficiency improvement is followed by 90% rebound in energy consumption, but in the long-run it leads to a 136% decrease in energy consumption. Overall, our estimated cross-country RE magnitudes indicate the need to consider or account for RE when energy forecasts and policy measures are derived from potential energy efficiency savings.

Keywords: Energy Efficiency; Input Distance Function; Panel Data; Rebound; Effects; Stochastic Frontier Analysis (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://journals.sagepub.com/doi/10.5547/01956574.37.3.made (text/html)

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: https://EconPapers.repec.org/RePEc:sae:enejou:v:37:y:2016:i:3:p:251-270

DOI: 10.5547/01956574.37.3.made

Access Statistics for this article

More articles in The Energy Journal
Bibliographic data for series maintained by SAGE Publications ().