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Energetic and Economic Aspects of Rebound, Part I: Foundations of a Rigorous Analytical Framework

Matthew Kuperus Heun, Gregor Semieniuk and Paul E. Brockway

The Energy Journal, 2025, vol. 46, issue 5, 245-307

Abstract: Widespread implementation of energy efficiency is a key greenhouse gas emissions mitigation measure, but rebound can “take back†energy savings. However, the absence of solid analytical foundations hinders empirical determination of the size of rebound. A new clarity is needed, one that involves both economics and energy analysis. In this paper (Part I), we advance foundations of a rigorous analytical framework for consumer-sided rebound that starts at the microeconomic level and is approachable for both energy analysts and economists. We develop foundations of a framework that (i) clarifies the energy, expenditure, and consumption aspects of rebound, (ii) combines embodied energy with operations, maintenance, and disposal effects (under a new “emplacement effect†), and (iii) provides the first operationalized link between microeconomic and macroeconomic levels. The framework enables determination of the effects of non-marginal energy service price decreases, satiated demand for the energy service, and reduced economy-wide energy demand. JEL Classification : O13, Q40, Q43

Keywords: energy efficiency; energy rebound; energy services; microeconomic rebound; substitution and income effects; macroeconomic rebound (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:46:y:2025:i:5:p:245-307

DOI: 10.1177/01956574251331969

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