The Rebound Effect with Energy Production: A Partial Equilibrium Analysis

Grant Allan, Peter McGregor, John Swales () and Karen Turner

No 925, Working Papers from University of Strathclyde Business School, Department of Economics

Abstract: Rebound is the extent to which improvements in energy efficiency fail to translate fully into reductions in energy use because of the implicit fall in the price of energy, when measured in efficiency units. This paper discusses aspects of the rebound effect that are introduced once energy is considered as a domestically produced commodity. A partial equilibrium approach is adopted in order to incorporate both energy use and production in a conceptually tractable way. The paper explores analytically two interesting results revealed in previous numerical simulations. The first is the possibility that energy use could fall by more than the implied improvement in efficiency. This corresponds to negative rebound. The second is the finding that the short-run rebound value can be greater than the corresponding long-run value.

Keywords: Energy demand; energy efficiency; rebound; partial equilibrium (search for similar items in EconPapers)
JEL-codes: Q41 Q43 Q55 Q56 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2009-11
New Economics Papers: this item is included in nep-ene
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Related works:
Working Paper: The Rebound Effect with Energy Production: A Partial Equilibrium Analysis (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:str:wpaper:0925

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