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

Morakinyo Adetutu (), Anthony Glass and Thomas Weyman-Jones

MPRA Paper from University Library of Munich, Germany

Abstract: Energy consumption and greenhouse emissions across many countries have increased overtime despite widespread energy efficiency improvements. One explanation offered in the literature is the rebound effect (RE), however there is a debate about the magnitude and appropriate model for estimating RE. Using a combined stochastic frontier analysis and two-stage dynamic panel data approach for 55 countries covering 1980-2010, we explore these two issues of magnitude and model. 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 36% 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)
JEL-codes: C23 D2 Q43 (search for similar items in EconPapers)
Date: 2015-07-02
New Economics Papers: this item is included in nep-eff, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
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Related works:
Journal Article: Economy-wide Estimates of Rebound Effects: Evidence from Panel Data (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:65409

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