How large is the economy-wide rebound effect in middle income countries? Evidence from Iran

Mahboubeh Jafari (), David Stern and Stephan B. Bruns
Additional contact information
Stephan B. Bruns: Centre for Environmental Sciences, University of Hasselt, Belgium and Department of Economics, University of Göttingen, Germany

CCEP Working Papers from Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University

Abstract: The issue of whether energy efficiency improvements will lower energy use or not is contentious. We estimate the economy-wide rebound effect for Iran using a structural vector autoregressive model estimated with quarterly data from 1988:3 to 2018:1. The structural shocks are identified by independent component analysis, a statistical identification technique that does not require us to impose restrictions based on economic theory on the model. The results show that in response to an energy efficiency shock energy use falls initially, but returns to near its original level over time. The economy-wide rebound effect in Iran is 84% after 6 years and its confidence interval includes 100% implying that policies that encourage energy efficiency innovation will have limited longterm impact on energy use.

Date: 2021-07
New Economics Papers: this item is included in nep-ara and nep-ene
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ccep.crawford.anu.edu.au/sites/default/fil ... fari_et_al._2021.pdf

Related works:
Journal Article: How large is the economy-wide rebound effect in middle income countries? Evidence from Iran (2022)
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:een:ccepwp:2107

Access Statistics for this paper

More papers in CCEP Working Papers from Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University Contact information at EDIRC.
Bibliographic data for series maintained by CCEP ().