The added value from a general equilibrium analyses of increased efficiency in household energy use

Patrizio Lecca, Peter McGregor, John Swales () and Karen Turner

No 1308, Working Papers from University of Strathclyde Business School, Department of Economics

Abstract: The aim of the paper is to identify the added value from using general equilibrium techniques to consider the economy-wide impacts of increased efficiency in household energy use. We take as an illustrative case study the effect of a 5% improvement in household energy efficiency on the UK economy. This impact is measured through simulations that use models that have increasing degrees of endogeneity but are calibrated on a common data set. That is to say, we calculate rebound effects for models that progress from the most basic partial equilibrium approach to a fully specified general equilibrium treatment. The size of the rebound effect on total energy use depends upon: the elasticity of substitution of energy in household consumption; the energy intensity of the different elements of household consumption demand; and the impact of changes in income, economic activity and relative prices. A general equilibrium model is required to capture these final three impacts.

Keywords: Energy efficiency; indirect rebound effects; economy-wide rebound effects; household energy consumption; CGE models (search for similar items in EconPapers)
JEL-codes: C68 D57 D58 Q41 Q43 Q48 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2013-06
New Economics Papers: this item is included in nep-cmp, nep-ene and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The added value from a general equilibrium analysis of increased efficiency in household energy use (2014)
Working Paper: The added value from a general equilibrium analyses of increased efficiency in household energy use (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:str:wpaper:1308

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